Lido Bldg. Co. v. Commissioner
United States Board of Tax Appeals
Where a corporation unable to advance funds to carry on litigation in defense of its title to a lease, constituting its sole asset, agrees with a stockholder that if he will advance the funds necessary for such purpose it will turn over to him 60 percent "of any of the net proceeds derived either from said litigation by settlement or for the sale of said lease", the amount paid by the corporation to the stockholder representing 60 percent of the amount realized from the…
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Where a corporation unable to advance funds to carry on litigation in defense of its title to a lease, constituting its sole asset, agrees with a stockholder that if he will advance the funds necessary for such purpose it will turn over to him 60 percent "of any of the net proceeds derived either from said litigation by settlement or for the sale of said lease", the amount paid by the corporation to the stockholder representing 60 percent of the amount realized from the successful termination of the litigation constitutes additional cost of the lease to be taken into account in the…
1Opinion of the Court
LIDO BUILDING COMPANY, INC., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Lido Bldg. Co. v. Commissioner
Docket No. 53385.
United States Board of Tax Appeals
31 B.T.A. 461; 1934 BTA LEXIS 1092;
October 30, 1934, Promulgated
Where a corporation unable to advance funds to carry on litigation in defense of its title to a lease, constituting its sole asset, agrees with a stockholder that if he will advance the funds necessary for such purpose it will turn over to him 60 percent "of any of the net proceeds derived either from said litigation by settlement or for the sale of said lease",…
2Cases cited1 opinion
- Lido Bldg. Co. v. CommissionerUnited States Board of Tax Appeals · 1934