Lowery v. Commissioner
United States Tax Court
1. Collapsible Corporations, Sec. 117(m), I.R.C. 1939. -- Petitioner was a minority stockholder in four corporations constructing apartment buildings. In two, all the shareholders sold their shares and realized gain prior to the completion of construction and realization of gain by the corporation.
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1. Collapsible Corporations, Sec. 117(m), I.R.C. 1939. -- Petitioner was a minority stockholder in four corporations constructing apartment buildings. In two, all the shareholders sold their shares and realized gain prior to the completion of construction and realization of gain by the corporation. Held, these corporations were collapsible within the meaning of section 117(m). 2. In the other two corporations, costs exceeded the available capital and loans and the shareholders were called upon for additional funds. Petitioner was unable to provide funds and agreed to sell his shares to permit…
1Opinion of the Court
OPINION.
BRUCE, Judge:
The respondent determined deficiencies in income tax, and additions to tax under section 291(a), I.R.C. 1939, for failure to file a timely return, and under section 294(d) (2) for substantial underestimate of tax, as follows:
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The principal issue for decision is whether gains realized by Sylvester J. Lowery from certain sales of stock are taxable as ordinary income pursuant to section 117 (m), I.B.C. 1939, relating to collapsible corporations. The additions to tax are also contested. The facts are stipulated and found accordingly.
The petitioners, husband and…
2Cases cited14 opinions
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- Raymond G. Burge and Kathleen E. Burge v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1958
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- Burge v. CommissionerUnited States Tax Court · 1957
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3Cited by8 opinions
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