Fairmount Cemetery Asso. v. Commissioner
United States Board of Tax Appeals
1. Fair market value at March 1, 1913, of cemetery lots sold by the petitioner in the taxable year determined. 2. A cemetery corporation sold mausoleum crypts under terms contained in its deeds obligating it to "perpetually maintain in good order the space above described," without expense to the purchaser. In order to provide for such perpetual maintenance, the petitioner created a reserve account into which it deposited 10 percent of all sales receipts for crypts sold.
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1. Fair market value at March 1, 1913, of cemetery lots sold by the petitioner in the taxable year determined. 2. A cemetery corporation sold mausoleum crypts under terms contained in its deeds obligating it to "perpetually maintain in good order the space above described," without expense to the purchaser. In order to provide for such perpetual maintenance, the petitioner created a reserve account into which it deposited 10 percent of all sales receipts for crypts sold. Held, that petitioner may not treat such deposits as allowable reserve charges and deduct them from its current income in…
1Opinion of the Court
*743OPINION.
Lansdon:
The petitioner acquired 560 acres of land in 1890, at a cost per acre not disclosed by the record. Carved out of such land it sold certain cemetery lots in 1927, 1928, 1929, and 1930 for amounts which the respondent has determined resulted in large profits. In substantially identical sections, the Revenue Acts of 1926 and 1928 provide that the basis for determining gain or loss from the disposition of property acquired before March 1, 1913, shall be cost, or fair market value at that date, whichever is greater. Although *744not proved for the record, all the circumstances indicate…
2Cases cited2 opinions
- Acacia Park Cemetery Asso. v. CommissionerUnited States Board of Tax Appeals · 1932
- Duquesne Steel Foundry Co. v. CommissionerUnited States Board of Tax Appeals · 1929
3Cited by2 opinions
- Cedar Park Cemetery Ass'n, Inc. v. CommissionerUnited States Tax Court · 1949
- Fairmount Cemetery Asso. v. CommissionerUnited States Board of Tax Appeals · 1934