Bonaire Development Co. v. Commissioner
United States Tax Court
The sole asset of N & V, a cash basis corporation, was a shopping center. It entered into a contract for the management of the property, which required N & V to pay $ 24,000 a year, at the rate of $ 2,000 per month. The entire $ 24,000 was paid during the first 5 months of the taxable year and deducted on its income tax return.
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The sole asset of N & V, a cash basis corporation, was a shopping center. It entered into a contract for the management of the property, which required N & V to pay $ 24,000 a year, at the rate of $ 2,000 per month. The entire $ 24,000 was paid during the first 5 months of the taxable year and deducted on its income tax return. Shortly before May 19, 1964, Branjon, Inc., purchased 100 percent of the stock of N & V. N & V was dissolved on May 19, 1964, and it distributed the shopping center in complete liquidation to Branjon, Inc. Held, the advance payment of management fees for services to be…
1Opinion of the Court
OPINION
Scott, Judge:
Respondent has determined that petitioner is liable as transferee of the assets of Branjon, Inc., which, in turn, was transferee of the assets of N & V Realty Corp., for a deficiency in the Federal income tax of N & V Realty Corp. for the taxable year 1964 in the amount of $3,748.01. Petitioner admitted in its amended petition that it is the transferee of the assets of N & V Realty Corp. and Branjon, Inc.1 The issues for decision are: (1) Whether a cash basis corporation recognizes income to the extent of fees paid for management services to be rendered for the remainder…
2Cases cited34 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Montana v. United StatesSupreme Court of the United States · 1979
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Dobson v. CommissionerSupreme Court of the United States · 1944
29 more not listed; retrieve them via the Exa API.
3Cited by26 opinions
- Keller v. CommissionerUnited States Tax Court · 1982
- Stephen A. Keller and Ethel L. Keller v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1984
- RLC Indus. Co. v. CommissionerUnited States Tax Court · 1992
- Bonaire Development Company, a California Corporation, Successor by Merger to Branjon, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1982
- Grynberg v. CommissionerUnited States Tax Court · 1984
21 more not listed; retrieve them via the Exa API.