Perata v. Commissioner
United States Board of Tax Appeals
1. A syndicate was formed in 1928 for the purpose of supplying cash to a corporation to enable it to buy certain assets. The syndicate acquired stock of the corporation and sold it at a profit and and before the close of the year had substantially completed its agreement to supply cash. The balance of the cash owing was covered by a dividend declared before the end of the year.
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1. A syndicate was formed in 1928 for the purpose of supplying cash to a corporation to enable it to buy certain assets. The syndicate acquired stock of the corporation and sold it at a profit and and before the close of the year had substantially completed its agreement to supply cash. The balance of the cash owing was covered by a dividend declared before the end of the year. Within the year the corporation released to the syndicate the remaining stock, which had been held in escrow. Held, that the syndicate was a joint venture and dividends received and the profit realized on on the sale…
1Opinion of the Court
*853OPINION.
Aeundell :
The syndicate, of which the petitioners were' members, was organized in July 1928 for the sole purpose of raising funds to enable the Italo Corporation to make the cash payments required by its contracts of purchase of the assets or stock of various corporations. A careful reading of the articles under which the syndicate was organized discloses that the syndicate manager had no authority to go further than the raising of such funds, the payment of the debts of the Italo Corporation, and distribution of the remaining proceeds among the syndicate members. The life of the…
2Cases cited1 opinion
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
3Cited by1 opinion
- Perata v. CommissionerUnited States Board of Tax Appeals · 1935