Cambridge Apartment Bldg. Corp. v. Commissioner
United States Board of Tax Appeals
INCOME - ASSESSMENTS ON STOCKHOLDERS. - Stockholder-tenants of an apartment building were assessed, and a part of the assessment was intended and was used to retire bonds of the corporation. The remainder of the assessment was for operating expenses.
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INCOME - ASSESSMENTS ON STOCKHOLDERS. - Stockholder-tenants of an apartment building were assessed, and a part of the assessment was intended and was used to retire bonds of the corporation. The remainder of the assessment was for operating expenses. Held, following Paducah & Illinois Railroad Co.,2 B.T.A. 1001, and 874Park Avenue Corporation,23 B.T.A. 400, that the portion of the assessment collected to retire bonds was a capital contribution to the corporation by the stockholders and was not income to the corporation.
1Opinion of the Court
OPINION.
MuRdock:
The Commissioner determined deficiencies as follows:
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The only issue for decision is whether or not amounts assessed upon and collected from stockholder-tenants in excess of operating expenses and for the purpose of retiring the bonded indebtedness were income or contributions of capital. The Board adopts the stipulation as its findings of fact.
The petitioner was organized under the laws of Illinois in 1927. It owned and operated an apartment building which was occupied' by its stockholders. The bylaws provided that all expenses for taxes, mortgage indebtedness,…
2Cited by19 opinions
- United States v. E. L. Bruce Co., IncCourt of Appeals for the Sixth Circuit · 1950
- Eckstein v. United StatesUnited States Court of Claims · 1971
- Park Place, Inc. v. CommissionerUnited States Tax Court · 1972
- G.M. Trading Corp. v. CommissionerCourt of Appeals for the Fifth Circuit · 1997
- United Grocers, Ltd. v. United StatesDistrict Court, N.D. California · 1960
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