Payne v. Commissioner
United States Tax Court
1. When taxpayers arrange their personal contractual relationships with their controlled corporations in such a way that mortgage loan proceeds will likely exceed costs of construction of rental properties and in addition design corporate capital structure to facilitate distributions of such excess funds and they are in fact distributed after construction, held, such distributions are attributable to circumstances present at the time of construction and the corporations were…
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1. When taxpayers arrange their personal contractual relationships with their controlled corporations in such a way that mortgage loan proceeds will likely exceed costs of construction of rental properties and in addition design corporate capital structure to facilitate distributions of such excess funds and they are in fact distributed after construction, held, such distributions are attributable to circumstances present at the time of construction and the corporations were availed of with the requisite view or intent proscribed by section 117 (m) (2) (A), I. R. C. 1939. 2. Corporations not…
1Opinion of the Court
FokresteR, Judge:
In these consolidated proceedings the Commissioner determined deficiencies in income tax and additions to tax for the year 1950 as follows:
_Additions to tax_ Petitioners Deficiency Sec. £94 (d) (1) (4) Sec. £94 (d) (£)
L. D. and Zelma Payne_ $42, 476. 35 _ _
J. T. and Myrtle Jenkins_ 54, 349. 40 $4, 891. 43 $3, 260. 97
R. B. and Marcelle Walden_ 3, 432. 32 563. 56 _
The principal issue for decision is whether the gain realized by the respective petitioners on the redemption of their second preferred common stock in eight separate housing corporations is taxable to them as gain…
2Cases cited6 opinions
- Raymond G. Burge and Kathleen E. Burge v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1958
- Arthur Glickman Herman Glickman and Ruth Glickman and Aaron Glickmand and Freda Glickman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1958
- J. D. Abbott and Kathryn Abbott v. Commissioner of Internal Revenue, Carl M. Wolfe and Mary E. Wolfe v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Abbott v. CommissionerUnited States Tax Court · 1957
- Burge v. CommissionerUnited States Tax Court · 1957
1 more not listed; retrieve them via the Exa API.
3Cited by33 opinions
- C. D. Spangler and Veva C. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
- Sidney v. CommissionerUnited States Tax Court · 1958
- Rolland L. King and Arlene P. King v. United StatesCourt of Appeals for the Fifth Circuit · 1981
- Bryan v. CommissionerUnited States Tax Court · 1959
- Farber v. CommissionerUnited States Tax Court · 1961
28 more not listed; retrieve them via the Exa API.