Manassas Airport Industrial Park, Inc. v. Commissioner
United States Tax Court
Petitioner purchased farmland and buildings which it held primarily for sale to customers in the ordinary course of its business. Petitioner constructed roads on the property and contemplated liquidation while construction of a road was in progress. Held: The collapsible corporation provisions of sec. 341, I.R.C. 1954, apply to real property not subject to depreciation.
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Petitioner purchased farmland and buildings which it held primarily for sale to customers in the ordinary course of its business. Petitioner constructed roads on the property and contemplated liquidation while construction of a road was in progress. Held: The collapsible corporation provisions of sec. 341, I.R.C. 1954, apply to real property not subject to depreciation. Petitioner realized only 9.3 percent of its total taxable income from the property prior to forming the intent to liquidate which is not a "substantial" part of the taxable income to be derived from the property. Accordingly,…
1Opinion of the Court
Goffe, Judge:
The Commissioner determined a $143,064.22 deficiency in petitioner’s Federal income tax for its taxable year ended March 31,1969. The issues for decision are:(1) The proper method of allocating the cost of constructing a road between three parcels of land adjacent to the road;(2) Whether petitioner is a collapsible corporation as defined by section 341(b) of the Internal Revenue Code of 1954 and precluded thereby from the nonrecognition benefits of section 337(a) by section 337(c)(1)(A);1(3) If petitioner is not a collapsible corporation, whether it sold substantially all of its…
2Cases cited25 opinions
- United States v. SanchezSupreme Court of the United States · 1950
- Braunstein v. CommissionerSupreme Court of the United States · 1963
- 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
- Sidney v. CommissionerUnited States Tax Court · 1958
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3Cited by2 opinions
- Manassas Airport Industrial Park, Inc. v. CommissionerUnited States Tax Court · 1976
- Manassas Airport Industrial Park, Inc., a Dissolved Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1977