The May Department Stores Company v. Commissioner of Internal Revenue

This is a timely appeal by the Commissioner from the decision of the Tax Court holding that the value of the land conveyed to the taxpayer, The May Department Stores Company, by developer of a shopping center in return for taxpayer’s agreement to locate and maintain a retail store on the site conveyed is excludable from taxpayer’s gross income as a contribution to capital under § 118(a) of the Internal Revenue Code of 1954 (26 U.S.C. § 118(a)).

The Tax Court’s opinion upon which its decision is based is reported at 33 T.C.M. 1128 (1974). The Tax Court’s opinion sets out the facts, which are…