Cooper Agency v. Commissioner
United States Tax Court
1. Petitioner, through its officers, orally agreed with Perpetual Building and Loan Association (an organization which they believed to be exempt from income tax under section 101(4) of the Code of 1939), and of which they were also directors, to borrow $ 600,000 at 7 per cent "interest" to build about 200 houses. At no time during petitioner's taxable years 1950 and 1951 did Perpetual advance to petitioner net amounts of more than $ 165,000 of said amount.
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1. Petitioner, through its officers, orally agreed with Perpetual Building and Loan Association (an organization which they believed to be exempt from income tax under section 101(4) of the Code of 1939), and of which they were also directors, to borrow $ 600,000 at 7 per cent "interest" to build about 200 houses. At no time during petitioner's taxable years 1950 and 1951 did Perpetual advance to petitioner net amounts of more than $ 165,000 of said amount. Each time petitioner sold a house and lot, the proceeds were turned over to Perpetual. During the years in question, petitioner paid 7…
1Opinion of the Court
Fisher, Judge:
Respondent determined deficiencies in income tax of petitioner as follows :
Period. Income tax
Taxable period Sept. 13, 1949, to Aug. 31, 1950_$5, 746. 88
Fiscal year ended Aug. 31, 1951_ 20,154. 82
The issues presented for our consideration are (1) whether petitioner is entitled to deductions for interest in the taxable years 1950 and 1951, in excess of $11,583.80 and $9,856.19, respectively, (2) whether petitioner is entitled to deductions for salary and payroll taxes in the years 1950 and 1951, in excess of $7,371.23 and $10,348.54, respectively, and (3) whether petitioner is…
2Cases cited11 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Higgins v. SmithSupreme Court of the United States · 1940
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
6 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Monon Railroad v. CommissionerUnited States Tax Court · 1970
- Perpetual Bldg. & Loan Asso. v. CommissionerUnited States Tax Court · 1960
- Estate of Cooper v. CommissionerCourt of Appeals for the Fourth Circuit · 1961
- Estate of William P. Cooper, Deceased, Daisy H. Cooper v. Commissioner of Internal Revenue, Perpetual Building and Loan Association of Columbia, and v. Commissioner of Internal Revenue, and Cooper Agency, and v. Commissioner of Internal Revenue, AndCourt of Appeals for the Fourth Circuit · 1961
- Cooper Agency v. CommissionerUnited States Tax Court · 1960
7 more not listed; retrieve them via the Exa API.