The Board of Trade of the City of Chicago and Subsidiaries v. Commissioner

106 T.C. No. 21

UNITED STATES TAX COURT THE BOARD OF TRADE OF THE CITY OF CHICAGO AND SUBSIDIARIES, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 8202-93. Filed May 29, 1996. Petitioner (P) is a taxable membership corporation that operates a futures exchange. When a membership on the exchange is transferred, the transferee must pay P a transfer fee, which, under P’s bylaws, is to be used to “purchase, retire or redeem the indebtedness encumbering the Board of Trade Building”, which houses P’s trading floor and substantial office space leased to third-party tenants.…