Abbott v. Commissioner
United States Tax Court
1. Corporation owning property with respect to which its stockholders (petitioners) agreed to cause conveyance, to procure F. H. A. commitments, and to have streets and other improvements installed, approved, dedicated, and paid for by corporation, held, to be "collapsible" under section 117 (m), I. R. C. 1939, so that gain realized by petitioners is ordinary income, notwithstanding that property was actually conveyed by stockholders after its distribution to them on…
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1. Corporation owning property with respect to which its stockholders (petitioners) agreed to cause conveyance, to procure F. H. A. commitments, and to have streets and other improvements installed, approved, dedicated, and paid for by corporation, held, to be "collapsible" under section 117 (m), I. R. C. 1939, so that gain realized by petitioners is ordinary income, notwithstanding that property was actually conveyed by stockholders after its distribution to them on dissolution, and that construction work was largely performed by independent contractors. 2. Failure to file a declaration of…
1Opinion of the Court
OPINION.
Oppeh, Judge:
If this controversy dealt with the liability of the seller of real property to pay tax on ordinary income rather than capital gain, the problem would be comparatively simple. The resulting profit would be ordinary “net income.” See Spanish Trail Land Co., 10 T. C. 430; Brown v. Commissioner, (C. A. 5) 143 F. 2d 468, affirming a Memorandum Opinion of this Court; Gamble v. Commissioner, (C. A. 5 ) 242 F. 2d 586, affirming T. C. Memo. 1955-289.
Petitioners themselves concede, indeed they insist, that “the record is clear that Leland Corporation was formed for the purchase,…
2Cases cited14 opinions
- Acker v. CommissionerUnited States Tax Court · 1956
- Fuller v. CommissionerUnited States Tax Court · 1953
- Kaltreider v. CommissionerUnited States Tax Court · 1957
- Fuller v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1954
- Smith v. CommissionerUnited States Tax Court · 1953
9 more not listed; retrieve them via the Exa API.
3Cited by63 opinions
- Heuer v. CommissionerUnited States Tax Court · 1959
- Pigman v. CommissionerUnited States Tax Court · 1958
- Fred N. Acker v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1958
- Heman v. CommissionerUnited States Tax Court · 1959
- 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
58 more not listed; retrieve them via the Exa API.