Mill Lane Club, Inc. v. Commissioner
United States Tax Court
A social club lost a number of its members and the remaining members decided to sell the clubhouse, pay off existing debts, and distribute the assets. The club had been exempt from income taxes until the date of the sale. Held, the sale of the club property and the distribution of the pro rata share of assets among the members did not destroy the club's exemption from income taxes for the final year of its operation.
1Opinion of the Court
OPINION.
Arundell, Judge:
Petitioner is a membership corporation which operated primarily as a luncheon club during the period here material. It was formed in 1888 and was exempt from income taxes prior to 1928.
The statute applicable to this case is section 103 of the Revenue Act of 19281 which is equivalent to section 101 (9) of the Internal Revenue Code of 1939. No question of the statute of limitations is involved, although the crucial transactions occurred in 1928 and the year involved is 1928. The petitioner did not file a return covering these transactions until some years later, and the…
2Cases cited3 opinions
- Koon Kreek Klub v. ThomasCourt of Appeals for the Fifth Circuit · 1939
- Santee Club v. WhiteCourt of Appeals for the First Circuit · 1936
- Anderson Country Club, Inc. v. CommissionerUnited States Tax Court · 1943
3Cited by4 opinions
- Maynard Hospital, Inc. v. CommissionerUnited States Tax Court · 1969
- Cate Ditch Co. v. United StatesDistrict Court, S.D. California · 1961
- Maynard Hospital, Inc. v. CommissionerUnited States Tax Court · 1969
- Mill Lane Club, Inc. v. CommissionerUnited States Tax Court · 1954