Amalgamated Housing Corp. v. Commissioner
United States Board of Tax Appeals
1. A limited dividend housing corporation, organized under the New York Housing Law, which chose to have all of its common stock owned by tenants and had preferred stock outstanding in the hands of nontenants, does not escape income tax either as an instrumentality of the State of New York engaged in an essential governmental function or as "a civic league or organization not organized for profit but operated exclusively for the promotion of social welfare."
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1. A limited dividend housing corporation, organized under the New York Housing Law, which chose to have all of its common stock owned by tenants and had preferred stock outstanding in the hands of nontenants, does not escape income tax either as an instrumentality of the State of New York engaged in an essential governmental function or as "a civic league or organization not organized for profit but operated exclusively for the promotion of social welfare." Sec. 103(8), Revenue Acts of 1928 and 1932. 2. The accrual method does not permit the deduction of amounts in anticipation of the cost…
1Opinion of the Court
*825OPINION.
Murdock:
These petitioners claim that they are instrumentalities of the State of New York, performing an essential governmental function, and, therefore, are not subject to Federal income tax. They cite authorities to show that the housing board was an instrumentality of the state. They were private corporations conducting their own separate businesses and paying taxes to a political subdivision of the State of New York on the land which they owned. They were no part of the government of the State of Yew York and they may not escape Federal income tax upon the theory that they are…
2Cases cited3 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Trinidad v. Sagrada Orden De Predicadores De La Provincia Del Santisimo Rosario De FilipinasSupreme Court of the United States · 1924
- Hughes v. StateSupreme Court of Arkansas · 1913
3Cited by3 opinions
- Spencer, White & Prentis v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1944
- Amalgamated Housing Corp. v. CommissionerUnited States Board of Tax Appeals · 1938
- Eastman Kodak Co. v. United StatesUnited States Court of Claims · 1976