South End Italian Independent Club, Inc. v. Commissioner
United States Tax Court
Petitioner, a social club exempt from tax under sec. 501(c)(7), conducted beano games pursuant to a Massachusetts license. Massachusetts law required the entire net proceeds of these beano games to be donated for charitable, religious, and educational uses. Petitioner's license could be revoked if it violated this or any other provision of Massachusetts law governing beano games.
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Petitioner, a social club exempt from tax under sec. 501(c)(7), conducted beano games pursuant to a Massachusetts license. Massachusetts law required the entire net proceeds of these beano games to be donated for charitable, religious, and educational uses. Petitioner's license could be revoked if it violated this or any other provision of Massachusetts law governing beano games. Petitioner donated the net proceeds of its beano games in accordance with the requirements of Massachusetts law. Held, petitioner's "donations" are fully deductible from its "unrelated business taxable income" as an…
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined deficiencies in petitioner’s income tax as follows:
Year Deficiency
1979. $3,604.02
1980. 2,847.10
1981 . 999.66
The issue presented is whether the proceeds of petitioner’s beano game operation, which were required by State law to be used for charitable, religious, or educational purposes as a condition to the retention of its beano license, and which were in fact used for such purposes, were deductible in full or only as limited by section 512(b)(10), I.R.C. 1954. The case was submitted fully stipulated.
Petitioner South End Italian Independent Club,…
2Cases cited29 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner v. DubersteinSupreme Court of the United States · 1960
- Nachman v. Commissioner of Internal Revenue. Tobias v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- United States v. Transamerica Corporation, Transamerica Corporation v. United StatesCourt of Appeals for the Ninth Circuit · 1968
- Nachman v. CommissionerUnited States Tax Court · 1949
24 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
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- Zeta Beta Tau Fraternity, Inc. v. CommissionerUnited States Tax Court · 1986