Nace Realty Co. v. Commissioner
United States Board of Tax Appeals
After contracting to sell its leasehold, petitioner corporation assigned the lease to its two stockholders, who thereafter consummated the sale and received the proceeds. Held that, in taking over and disposing of the leasehold, the individuals acted as agents for and on behalf of the corporation; that the profit from the sale inured and is taxable to the corporation.
1Opinion of the Court
*470OPINION.
Goodrich:
We have here a transaction, planned and carried out for the purpose of avoiding a tax liability otherwise resulting to a corporation upon the disposition of certain of its assets. In the absence of fraud, such a device, if effected by legal means, must be recognized and the liability for tax imposed where it thereafter falls, for the proper avoidance or diminution of a foreseen tax liability is not prohibited. United States v. Isham, 84 U.S. 496; Bullen v. Wisconsin, 240 U.S. 625; Weeks v. Sibley, 296 Fed. 155; Wiggins v. Commissioner, 46 Fed. (2d) 743. There is no suggestion…
2Cases cited9 opinions
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- United States v. IshamSupreme Court of the United States · 1873
- Bullen v. WisconsinSupreme Court of the United States · 1916
- Taylor Oil & Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Fruit Belt Telephone Co. v. CommissionerUnited States Board of Tax Appeals · 1931
4 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Palmer v. CommissionerUnited States Tax Court · 1965
- McInerney v. CommissionerUnited States Board of Tax Appeals · 1933
- Chisholm v. CommissionerUnited States Board of Tax Appeals · 1934
- Uihlein v. CommissionerUnited States Board of Tax Appeals · 1934
- Peters v. CommissionerUnited States Board of Tax Appeals · 1933
15 more not listed; retrieve them via the Exa API.