Howell v. Commissioner
United States Tax Court
Three individuals decided to acquire property as an investment. They formed a corporation in 1961 and caused it to purchase the land. The corporation had no other assets and received no income from the property. It filed an election in 1964 under sec. 1372, I.R.C. 1954, to be taxed as a small business corporation.
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Three individuals decided to acquire property as an investment. They formed a corporation in 1961 and caused it to purchase the land. The corporation had no other assets and received no income from the property. It filed an election in 1964 under sec. 1372, I.R.C. 1954, to be taxed as a small business corporation. In 1964, 1965, and 1966 the corporation sold the property in three transactions, with the first two being merely incidental to the final sale which disposed of over 90 percent of the tract of land. Held, (1) the fact that the corporation's only activity was the sale of the land does…
1Opinion of the Court
William B. Howell and Fay S. Howell, et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Howell v. Commissioner
Docket Nos. 1538-70, 1546-70, 1596-70, 1597-70
United States Tax Court
57 T.C. 546; 1972 U.S. Tax Ct. LEXIS 188;
January 31, 1972, Filed
Decisions will be entered for the petitioners.
Three individuals decided to acquire property as an investment. They formed a corporation in 1961 and caused it to purchase the land. The corporation had no other assets and received no income from the property. It filed an election in 1964 under sec. 1372, I.R.C. 1954, to be taxed as a…
Also in this document: Dissent.
2Cases cited27 opinions
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Malat v. RiddellSupreme Court of the United States · 1966
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
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