West End Co. v. Commissioner
United States Tax Court
1. Interest received on mortgage constituted personal holding company income because the property covered by mortgage was held by petitioner for investment purposes and not for sale in the ordinary course of its trade or business. 2. For the failure to file personal holding company income tax returns the 25 per cent penalty under section 291 (a) of the Internal Revenue Code of 1939 is approved.
1Opinion of the Court
OPINION.
Abtjndell, Judge:
The petitioner’s total income during the years 1948 and 1949 was interest received on a purchase money mortgage which was given when petitioner disposed of all of its real estate holdings in 1946. The income received was clearly personal holding company income within the meaning of section 502 (a) of the Internal Revenue Code of 1939, unless the purchase money mortgage from which the interest flowed was given in connection with the disposal of property held primarily for sale to customers in the ordinary course of business. (Section 502 (g) of the Internal Revenue…
2Cited by4 opinions
- Lake Gerar Development Co. v. CommissionerUnited States Tax Court · 1979
- Gilmore v. United StatesDistrict Court, D. Maryland · 1977
- Lake Gerar Development Co. v. CommissionerUnited States Tax Court · 1979
- West End Co. v. CommissionerUnited States Tax Court · 1955