Leisure Time Enterprises, Inc. v. Commissioner
United States Tax Court
In 1962 Shassian, a residential builder and developer, agreed to have facilities for a swim club constructed and to lease and then sell them to a community group organized for the purpose of operating the swim club. On May 16, 1962, Shassian organized L corporation and became its sole shareholder. Five days later L entered into a contract with the community group for the lease and sale of the swim club facilities.
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In 1962 Shassian, a residential builder and developer, agreed to have facilities for a swim club constructed and to lease and then sell them to a community group organized for the purpose of operating the swim club. On May 16, 1962, Shassian organized L corporation and became its sole shareholder. Five days later L entered into a contract with the community group for the lease and sale of the swim club facilities. Construction of the facilities continued through June of 1962. The facilities were sold on July 13, 1965, at a gain of $ 61,761.66. L was liquidated soon thereafter. Held, by reason…
1Opinion of the Court
OPINION
Naum, Judge:
The Commissioner determined a deficiency of $18,-066.81 in petitioner’s income tax for the taxable year ended April 30, 1966. The only issue presented for decision is whether gain realized by petitioner on the sale of its property pursuant to a plan of complete liquidation qualifies for nonrecognition under the provisions of section 337, I.R.C. 1954. The resolution of that question depends upon the applicability of section 337 (c) (1) (A) which excludes from the coverage of section 337 “any sale or exchange * * * made by a collapsible corporation (as defined in section…
2Cases cited17 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Bingler v. JohnsonSupreme Court of the United States · 1969
- Brewster v. GageSupreme Court of the United States · 1930
- Sanford v. CommissionerUnited States Tax Court · 1968
12 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Leisure Time Enterprises, Inc. v. CommissionerUnited States Tax Court · 1971
- Mitchell v. CommissionerUnited States Tax Court · 1972