Theatre Concessions, Inc. v. Commissioner
United States Tax Court
X corporation which had 5 stockholders owned and operated 4 theaters in which it also operated the business of selling soft drinks, candy, popcorn, etc., known as a "concession" business.
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X corporation which had 5 stockholders owned and operated 4 theaters in which it also operated the business of selling soft drinks, candy, popcorn, etc., known as a "concession" business. X organized petitioner corporation and acquired all its stock for $ 2,000. Thereupon X and petitioner executed a lease agreement, whereby petitioner acquired the right to operate such concession business on the premises of X. Petitioner agreed to pay X a percentage of its gross revenue and also to pay X for its supplies and equipment a price equivalent to X's costs. Petitioner failed to establish by a…
1Opinion of the Court
OPINION.
Kern, Judge:
The first question to be considered is whether respondent properly determined under section 15 (c) of the Internal Revenue Code of 1939 1 that petitioner was “not entitled to the benefit of the $25,000.00 exemption from surtax provided in section 15 (b), or the $25,000.00 minimum excess profits credit provided in the last sentence of section 431 * * Petitioner contends that respondent’s determination as -above stated was improper and erroneous because (1) the major purpose of any transfer here involved was not to secure the surtax exemption, and (2) there was no “transfer”…
2Cited by48 opinions
- Aero Rental v. CommissionerUnited States Tax Court · 1975
- Hynes v. CommissionerUnited States Tax Court · 1980
- Johnsen v. CommissionerUnited States Tax Court · 1984
- Bush Hog Mfg. Co. v. CommissionerUnited States Tax Court · 1964
- Graham v. CommissionerUnited States Tax Court · 1982
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