S. & M. Plumbing Co. v. Commissioner
United States Tax Court
In order to furnish bonds required for the performance of certain construction contracts for the board of education it was necessary for S. & M. to obtain a capital contribution of $ 50,000. Pursuant to an agreement between S. & M. and Rosenblum, Rosenblum deposited $ 50,000 in a special account for use substantially limited to the construction projects.
Read the full summary
In order to furnish bonds required for the performance of certain construction contracts for the board of education it was necessary for S. & M. to obtain a capital contribution of $ 50,000. Pursuant to an agreement between S. & M. and Rosenblum, Rosenblum deposited $ 50,000 in a special account for use substantially limited to the construction projects. In return Rosenblum was to receive 50 percent of the profits from the construction projects but no less than the return of his capital plus $ 40,000. In fact Rosenblum received $ 90,000. Held: Despite the fact that Rosenblum's capital…
1Opinion of the Court
Sterrett, Judge:
Respondent determined deficiencies in the Federal income tax of the petitioners in the amounts and for the calendar years set forth below:
S. & M. Plumbing Co., Inc., docket No. 200-68_/ -*-962 $15, 529. 55 1 1963 4, 878. 14
Harry and Frances Rosemblum, docket No. 366-68_ 1964 13, 170. 09
Due to concessions by the petitioner in docket No. 200-68 and due to the failure of petitioners in docket No. 366-68 to offer proof concerning the respondent’s determination of long-term capital gains incurred in the sale of a residence which we treat as a concession, the sole issue for our…
2Cases cited3 opinions
- Podell v. CommissionerUnited States Tax Court · 1970
- Farris O. Anderson v. National Producing Co., a Corporation, and George A. HamidCourt of Appeals for the Second Circuit · 1958
- Fishback v. United StatesDistrict Court, D. South Dakota · 1963
3Cited by19 opinions
- Hensel Phelps Constr. Co. v. CommissionerUnited States Tax Court · 1980
- Long v. CommissionerUnited States Tax Court · 1981
- Federal Bulk Carriers, Inc. v. CommissionerUnited States Tax Court · 1976
- Erickson v. CommissionerUnited States Tax Court · 1971
- Hunt v. CommissionerUnited States Tax Court · 1990
14 more not listed; retrieve them via the Exa API.