Keller Street Development Co. v. Commissioner
United States Tax Court
Keller Street Development Company sought to treat a payment received in settlement of a shareholder's derivative lawsuit as gain from the sale of a capital asset.
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Keller Street Development Company sought to treat a payment received in settlement of a shareholder's derivative lawsuit as gain from the sale of a capital asset. Held, such amount was paid as reasonable compensation for the use of Keller's transferred assets for almost a decade and as a substitute for such product or profit derived thereby, and is fully includable in Keller's gross income pursuant to sec. 61. Held, further, reasonable compensation for Keller's sole executive officer set at $ 55,000 per year. Held,further, useful life of shopping center properties determined.
1Opinion of the Court
KELLER STREET DEVELOPMENT COMPANY, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
PAUL KALMANOVITZ AND LYDIA KALMANOVITZ, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Keller Street Development Co. v. Commissioner
Docket Nos. 8666-72, 8890-72.
United States Tax Court
T.C. Memo 1978-350; 1978 Tax Ct. Memo LEXIS 165; 37 T.C.M. (CCH) 1451; T.C.M. (RIA) 78350;
September 5, 1978, Filed
Keller Street Development Company sought to treat a payment received in settlement of a shareholder's derivative lawsuit as gain from the sale of a capital asset. Held, such amount was paid as…
2Cases cited45 opinions
- Botany Worsted Mills v. United StatesSupreme Court of the United States · 1929
- United States v. GilmoreSupreme Court of the United States · 1963
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Massey Motors, Inc. v. United StatesSupreme Court of the United States · 1960
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