Gerstle v. Commissioner
United States Board of Tax Appeals
1. Certain syndicates held not to be associations but to be joint ventures, the members of which are taxable as individuals and, being so taxable, have the right each year to deduct their proportionate share of the operating losses of such syndicates. 2. The demolition of buildings held not to constitute a deductible loss where such demolition enhanced the value of the property.
1Opinion of the Court
*839OPINION.
Aeundell:
In these proceedings the respondent determined that the syndicates of which the petitioners were members were taxable as associations, and on that theory he disallowed claimed losses growing out of the operation of the syndicate properties and on the demolition of buildings.
The several syndicates, in our opinion, were not taxable associations. An association that is taxable as a corporation has “ the general form and mode of procedure of a corporation.” Hecht v. Malley, 265 U. S. 144. At the outset it is to be noted that the syndicate agreements provide that the members “ are…
2Cases cited2 opinions
- Hecht v. MalleySupreme Court of the United States · 1924
- Clark v. SidwaySupreme Court of the United States · 1892
3Cited by6 opinions
- United States v. KoshlandCourt of Appeals for the Ninth Circuit · 1954
- Calaf Collazo v. Secretario de HaciendaSupreme Court of Puerto Rico · 1954
- Piedmont National Bank of Spartanburg v. United StatesDistrict Court, W.D. South Carolina · 1958
- Calaf Collazo v. Secretary of TreasurySupreme Court of Puerto Rico · 1954
- Cleveland Electric Illuminating Co. v. United StatesUnited States Court of Claims · 1984
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