Montgomery v. Commissioner
United States Tax Court
Assignability of Construction Contract -- Recognition of Separate Corporate Entity. -- Petitioners are husband and wife, residing in Texas. On December 30, 1935, the husband entered into a contract with the State of Texas to construct a certain building, and thereafter he proceeded with the work until July 1, 1936, on which date petitioners organized a Texas corporation to which the contract was assigned in consideration of its assumption of all losses and liabilities.
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Assignability of Construction Contract -- Recognition of Separate Corporate Entity. -- Petitioners are husband and wife, residing in Texas. On December 30, 1935, the husband entered into a contract with the State of Texas to construct a certain building, and thereafter he proceeded with the work until July 1, 1936, on which date petitioners organized a Texas corporation to which the contract was assigned in consideration of its assumption of all losses and liabilities. Petitioners made gifts of 32 shares of the corporation's stock, out of a total of 100 shares, to each of their three minor…
1Opinion of the Court
OPINION.
Held, Judge:
The deficiencies involved in these proceedings result in their entirety from respondent’s action in including in the community income of petitioners the total 'profits realized from the construction of the State of Texas Building, completed in September 1936. The profit derived from the construction contract up to July 1,1936, in the amount of $86,009.59 was reported by. petitioners as community income, but respondent held that the balance of the profit in the amount of $78,567.95, derived after July 1, 1936, and reported by the corporation, P. O’B. Montgomery, Inc., in…
2Cases cited13 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Gregory v. HelveringSupreme Court of the United States · 1935
- Lucas v. EarlSupreme Court of the United States · 1930
- Higgins v. SmithSupreme Court of the United States · 1940
- Blair v. CommissionerSupreme Court of the United States · 1937
8 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Nat Harrison Assoc., Inc. v. CommissionerUnited States Tax Court · 1964
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- Montgomery v. ThomasCourt of Appeals for the Fifth Circuit · 1944
- Commissioner of Internal Revenue v. MontgomeryCourt of Appeals for the Fifth Circuit · 1944
- Blue Flame Gas Co. v. CommissionerUnited States Tax Court · 1970
7 more not listed; retrieve them via the Exa API.