Shelden Land Co. v. Commissioner
United States Board of Tax Appeals
1. Where the taxpayer corporation, nearly all of whose stock was held directly or beneficially by relatives of the same family, sold certain land to a second corporation whose stock was entirely owned by a trust for the benefit of two members of the family, and there was no option or agreement for reacquisition of the land by the taxpayer and it was sold at the market price, Held, a deduction in full for loss on the sale is not prevented by the provisions of section 24(a)(6)…
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1. Where the taxpayer corporation, nearly all of whose stock was held directly or beneficially by relatives of the same family, sold certain land to a second corporation whose stock was entirely owned by a trust for the benefit of two members of the family, and there was no option or agreement for reacquisition of the land by the taxpayer and it was sold at the market price, Held, a deduction in full for loss on the sale is not prevented by the provisions of section 24(a)(6) of the Revenue Act of 1934 and, since the sale was bona fide, must be allowed. 2. Losses suffered by petitioner as a…
1Opinion of the Court
*502OPINION.
Leech :
The first issue arises out of respondent’s disallowance of a loss of $235,766.14 which petitioner claims as a result of the sale of land made by it to the Warren Corporation. Respondent’s action is predicated on two propositions, first that the sale falls within section 24 (a) (6) of the Revenue Act of 1934, and, second, that the interfamily character and other circumstances of the transactions in connection with the sale contradict its bona fides and render the sale a nullity for tax purposes.
Section 24 (a) (6) disallows any deduction for “loss from sales or exchanges of…
2Cases cited6 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Higgins v. SmithSupreme Court of the United States · 1940
- Burnet v. ClarkSupreme Court of the United States · 1932
- United States v. IshamSupreme Court of the United States · 1873
- Burnet v. Commonwealth Improvement Co.Supreme Court of the United States · 1932
1 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Clínica Dr. Mario Juliá, Inc. v. Secretario de HaciendaSupreme Court of Puerto Rico · 1954
- Ft. Walton Square, Inc. v. CommissionerUnited States Tax Court · 1970
- Brost Motors, Inc. v. CommissionerUnited States Tax Court · 1948
- Clínica Dr. Mario Julia, Inc. v. Secretary of TreasurySupreme Court of Puerto Rico · 1954
- Ft. Walton Square, Inc. v. CommissionerUnited States Tax Court · 1970
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