McDonald v. Commissioner
United States Tax Court
Corporation was liquidated and was entitled to nonrecognition of gain or loss under section 337(a), 1954 Code. It, however, was required to pay Louisiana State income taxes in a substantial amount arising out of and allocable to gains from the sale of real estate, with respect to which it was entitled to nonrecognition of gains under the Federal income tax laws. Respondent disallowed the deduction of Louisiana State income taxes.
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Corporation was liquidated and was entitled to nonrecognition of gain or loss under section 337(a), 1954 Code. It, however, was required to pay Louisiana State income taxes in a substantial amount arising out of and allocable to gains from the sale of real estate, with respect to which it was entitled to nonrecognition of gains under the Federal income tax laws. Respondent disallowed the deduction of Louisiana State income taxes. Respondent contends such taxes are allocable to a class of income wholly exempt from the taxes imposed by subtitle A of the Code and, therefore, nondeductible…
1Opinion of the Court
OPINION.
Fisher, Judge:
Respondent determined a deficiency of $13,863.66 in income taxes against petitioners as transferees of assets of The Oaks, Incorporated, In Liquidation (hereinafter referred to as the corporation) .
The sole practical issue before us is whether certain State income taxes arising out of and allocable to gains from the sale of real estate, with respect to which the corporation was entitled to nonrecognition of gams under the Federal income tax laws, were applicable to a class of income wholly exempt from the taxes imposed by subtitle A of the Code of 1954.
All of the facts…
2Cases cited5 opinions
- Hawaiian Trust Company Limited v. United StatesCourt of Appeals for the Ninth Circuit · 1961
- Curtis v. CommissionerUnited States Tax Court · 1944
- Cotton States Fertilizer Co. v. CommissionerUnited States Tax Court · 1957
- Heffelfinger v. CommissionerUnited States Tax Court · 1945
- HAWAIIAN TRUST COMPANY v. United StatesDistrict Court, D. Hawaii · 1959
3Cited by6 opinions
- City Bank of Washington v. CommissionerUnited States Tax Court · 1962
- Commissioner v. McDonaldCourt of Appeals for the Fifth Circuit · 1963
- COMMISSIONER OF INTERNAL REVENUE v. McDONALDCourt of Appeals for the Fifth Circuit · 1963
- City Bank of Washington v. CommissionerUnited States Tax Court · 1962
- McDonald v. CommissionerUnited States Tax Court · 1961
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