Fourth & Railroad Realty Co. v. Commissioner
United States Tax Court
1. Two stockholders owned all the stock of petitioner. Petitioner's building was leased to a partnership, engaged in manufacturing activities, in which the two stockholders were members. Petitioner's entire income came from the rental of its property to the partnership.
Read the full summary
1. Two stockholders owned all the stock of petitioner. Petitioner's building was leased to a partnership, engaged in manufacturing activities, in which the two stockholders were members. Petitioner's entire income came from the rental of its property to the partnership. Held, the rental income was personal holding company income under section 502 (f) of the 1939 Internal Revenue Code and petitioner, for the year 1944, was a personal holding company within the meaning of section 501. 2. Petitioner failed to file timely personal holding company income tax returns for the year 1944. Advice of…
1Opinion of the Court
OPINION.
Mulroney, Judge:
Petitioner makes the argument that it was not a personal holding company in 1944 within the meaning of section 501 (a) of the 1939 Internal Revenue Code. This section provides that the term “personal holding company” means any corporation (1) with more than 50 per cent in value of its outstanding stock owned, directly or indirectly at any time during the last half of the taxable year, by or for not more than five individuals, and (2) 80 per cent of whose gross income for the taxable year is “personal holding company income” as defined in section 502. Section 502 lists…
2Cases cited10 opinions
- Lucas v. Pilliod Lumber Co.Supreme Court of the United States · 1930
- Hatfried, Inc. v. Commissioner of Internal Rev.Court of Appeals for the Third Circuit · 1947
- Consolidated Apparel Co. v. CommissionerUnited States Tax Court · 1952
- Consolidated Apparel Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1953
- Randolph Products Co. v. ManningCourt of Appeals for the Third Circuit · 1949
5 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Estate of La Meres v. Comm'rUnited States Tax Court · 1992
- Yale Ave. Corp. v. CommissionerUnited States Tax Court · 1972
- General Instrument Corp. v. CommissionerUnited States Tax Court · 1961
- Medical-Surgical Group, Inc. v. CommissionerUnited States Tax Court · 1960
- Estate of De Niro v. CommissionerUnited States Tax Court · 1982
11 more not listed; retrieve them via the Exa API.