550 Park Ave. Corp. v. Commissioner
United States Board of Tax Appeals
1. The petitioner held to be affiliated with each other and with certain other corporations for 1922 and 1923. 2. Two of the petitioner corporations paid commissions to real estate brokers for securing tenants for apartments in buildings owned by them in 1922, 1923, and 1924, charged the amounts to expense, and deducted the same from gross income in their income-tax returns.
Read the full summary
1. The petitioner held to be affiliated with each other and with certain other corporations for 1922 and 1923. 2. Two of the petitioner corporations paid commissions to real estate brokers for securing tenants for apartments in buildings owned by them in 1922, 1923, and 1924, charged the amounts to expense, and deducted the same from gross income in their income-tax returns. The rental commissions thus paid were disallowed as deductions by the Commissioner who held that they constituted the cost of capital assets and should be charged off over the life of the assets. The petitioners kept…
1Opinion of the Court
*294OPINION.
Smith:
The petitioners claim to be affiliated for the years 1922 and 1923. In their petitions they also claim to be affiliated for 1924, but at the hearing of these proceedings that claim was waived. Whether they were affiliated or not, they are not permitted to have *295tlieir tax liabilities determined upon the basis of consolidated returns unless the group actually filed a consolidated return for 1922. If a consolidated return was filed for 1922, and if the petitioners were affiliated,' a consolidated return was required for 1923, the petitioners not having received permission to change…
2Cited by1 opinion
- 550 Park Ave. Corp. v. CommissionerUnited States Board of Tax Appeals · 1930