Huber Homes, Inc. v. Commissioner
United States Tax Court
Huber Homes was engaged principally in the construction and sale of single-family houses. Huber Investment, its wholly owned subsidiary, was engaged principally in the real estate rental business. In 1965 Huber Homes transferred to Huber Investment at cost 52 unsold houses and lots for the purpose of converting them to rental properties. At the time of the transfer, the fair market value of the houses and lots exceeded their cost.
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Huber Homes was engaged principally in the construction and sale of single-family houses. Huber Investment, its wholly owned subsidiary, was engaged principally in the real estate rental business. In 1965 Huber Homes transferred to Huber Investment at cost 52 unsold houses and lots for the purpose of converting them to rental properties. At the time of the transfer, the fair market value of the houses and lots exceeded their cost. Since that time, Huber Investment has retained the 52 houses and lots and has operated them as rental units. The Commissioner determined that as the result of the…
1Opinion of the Court
Tbe Commissioner determined deficiencies in tbe income tax of petitioner for tbe taxable year ended March 31, 1963, and the taxable period beginning March 29,1965, and ending August 31, 1965, in tbe respective amounts of $25,973.15 and $79,311.41.
After concessions by both parties, the issue presented is whether the Commissioner properly “allocated” income to the petitioner, under the terms of section 482, I.E.C. 1954, in respect of its transfer of 52 houses to its wholly owned subsidiary at cost.
BINDINGS OK PACT
The facts stipulated by the parties are incorporated herein by this reference.
Huber…
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