Ambassador Apartments, Inc. v. Commissioner
United States Tax Court
Two individuals transferred an apartment building to a corporation in a transaction under sec. 351, I.R.C. 1954, and received in return all the stock of the corporation and a note secured by a fourth mortgage on the property in the amount of $ 193,511.56. After the transfer, the corporation had stated equity capital of $ 5,000 and formal long-term indebtedness of $ 615,000. Held, on the facts, the note in substance represented equity rather than indebtedness.
1Opinion of the Court
Simpson, Judge:
The respondent determined deficiencies in the income tax of the petitioner Ambassador Apartments, Inc., of $3,676.07 for the taxable year 1960, and $2,971.50 for the taxable year 1961, and in the income tax of the petitioners Louis and Rose Litoff of $3,477.33 for the taxable year 1960. This case involves controversies over whether the corporate petitioner is entitled to deduct, as interest, payments which it made to the individual petitioners and whether the individual petitioners are entitled to treat payments which they received from the corporate petitioner as the return of…
2Cases cited12 opinions
- Gooding Amusement Co. v. CommissionerUnited States Tax Court · 1954
- Dobkin v. CommissionerUnited States Tax Court · 1950
- Tauber v. CommissionerUnited States Tax Court · 1955
- Sun Properties, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1955
- Nassau Lens Co., Inc. v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Harry Pildes and Sarah PildesCourt of Appeals for the Second Circuit · 1962
7 more not listed; retrieve them via the Exa API.
3Cited by44 opinions
- Siegel v. CommissionerUnited States Tax Court · 1982
- Falsetti v. CommissionerUnited States Tax Court · 1985
- Narver v. CommissionerUnited States Tax Court · 1980
- Whitehouse Hotel Ltd. Partnership v. CommissionerCourt of Appeals for the Fifth Circuit · 2010
- Estate of Spruill v. CommissionerUnited States Tax Court · 1987
39 more not listed; retrieve them via the Exa API.