Strong v. Commissioner
United States Tax Court
Petitioners, in connection with an apartment complex to be constructed and operated by them as partners, formed a corporation to obtain financing at a rate of interest in excess of the limit imposed by State law on loans to individuals. Title to the property was transferred to the corporation which executed the various documents relating to the financing and engaged in other related activities.
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Petitioners, in connection with an apartment complex to be constructed and operated by them as partners, formed a corporation to obtain financing at a rate of interest in excess of the limit imposed by State law on loans to individuals. Title to the property was transferred to the corporation which executed the various documents relating to the financing and engaged in other related activities. Held, the corporation was not merely a nominee whose existence could be ignored for tax purposes and the net operating losses during the years at issue were its losses and not those of the partnership.
1Opinion of the Court
Tannenwald, Judge:
Respondent determined the following deficiencies in these consolidated cases:
Docket No. 1965 1966 1968 1969
2173-74_ 0 0 $6,402.96 $4,725.61
2174-74_ 0 0 1,946.00 520.00
2175-74_ 0 0 929.95 361.17
2206-74_ 0 0 491.57 178.33
2207-74_ 0 0 1,057.10 613.00
2208-74_ $1,333 $573 2,691.00 9,534.49
At issue is whether net operating losses from the construction and operation of an apartment complex were those of a partnership or its controlled corporation.
FINDINGS OF FACT
Some of the facts are stipulated and are found accordingly. The stipulation of facts and attached exhibits are…
2Cases cited20 opinions
- Higgins v. SmithSupreme Court of the United States · 1940
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- National Carbide Corp. v. CommissionerSupreme Court of the United States · 1949
- Burnet v. Commonwealth Improvement Co.Supreme Court of the United States · 1932
- National Investors Corporation v. HoeyCourt of Appeals for the Second Circuit · 1944
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3Cited by88 opinions
- Coleman v. CommissionerUnited States Tax Court · 1986
- Hospital Corp. of America v. CommissionerUnited States Tax Court · 1983
- Roccaforte v. CommissionerUnited States Tax Court · 1981
- Stoody v. CommissionerUnited States Tax Court · 1976
- Anesthesia Service Medical Group, Inc. v. CommissionerUnited States Tax Court · 1985
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