Benedek v. Commissoner
United States Tax Court
The petitioners formed corporations for the construction of an apartment housing project. The corporations borrowed $ 21,719,300 on FHA-insured mortgage loans to construct the project and expended in such construction a total of $ 18,118,987. The corporations distributed to their stockholders, among whom were the petitioners, a total of $ 3,158,000 in 1949, 1950, and 1951. At such times, the value of the leaseholds on which the project was constructed was $ 1,517,333. Held:…
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The petitioners formed corporations for the construction of an apartment housing project. The corporations borrowed $ 21,719,300 on FHA-insured mortgage loans to construct the project and expended in such construction a total of $ 18,118,987. The corporations distributed to their stockholders, among whom were the petitioners, a total of $ 3,158,000 in 1949, 1950, and 1951. At such times, the value of the leaseholds on which the project was constructed was $ 1,517,333. Held: The corporations were collapsible corporations within the meaning of sec. 117(m), I.R.C. 1939, and more than 70 percent…
1Opinion of the Court
Simpson, Judge:
The respondent determined deficiencies in income tax of the petitioners as follows:
Petitioners I960 1951
Louis and Janet Benedek_ $16, 203. 88 $87, 009. 62
Henry and Myrtle G. Hirseh_ 95, 681. 63 334, 666. 10
Alexander P. and Mary E. Hirseh. 95, 483. 68 338, 079. 94
Martin and Leonore Benedek_ 48, 796. 25 212, 738. 09
The issue for decision is whether the Farragut corporations, of which the petitioners were stockholders and from which they receive distributions in 1950 and 1951, were collapsible corporations within the meaning of section 117(m) of the Internal Revenue Code of 1939 2…
2Cases cited8 opinions
- Raymond G. Burge and Kathleen E. Burge v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1958
- Arthur Glickman Herman Glickman and Ruth Glickman and Aaron Glickmand and Freda Glickman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1958
- Braunstein v. CommissionerSupreme Court of the United States · 1963
- Burge v. CommissionerUnited States Tax Court · 1957
- Payne v. CommissionerUnited States Tax Court · 1958
3 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Benedek v. CommissonerUnited States Tax Court · 1968