Fullerton v. Commissioner

OPINION.

Offer, Judge:

Before it may be determined that an association is taxable as a corporation we must first find that the purpose was to carry on business under the guise of a trust.1 Where the operation is undertaken either as a liquidating process or “to hold and conserve particular property with incidental powers as in the traditional type of trusts,” Morrissey v. Commissioner, 296 U. S. 344, it has been held that the business aspects are lacking.

It seems to us evident from the facts that the present trust was but a step in the liquidation of the Fullerton Groves Corporation. In order…