Lots, Inc. v. Commissioner
United States Tax Court
1. Moneys advanced to a corporation by its principal stockholder to finance the development of a real estate subdivision, held, on the facts, to be loans rather than contributions to capital. 2. Cost to a real estate developer of constructing a shelter in a city-owned park which the city required as a condition to its approval of the developer's subdivision plat, held, a capital expenditure rather than a business expense. 3. Petitioner purchased an undivided 45-percent…
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1. Moneys advanced to a corporation by its principal stockholder to finance the development of a real estate subdivision, held, on the facts, to be loans rather than contributions to capital. 2. Cost to a real estate developer of constructing a shelter in a city-owned park which the city required as a condition to its approval of the developer's subdivision plat, held, a capital expenditure rather than a business expense. 3. Petitioner purchased an undivided 45-percent working interest in an oil lease for $ 20,000 with the seller reserving an oil production payment of $ 30,600. A proportional…
1Opinion of the Court
OPINION
The question in this issue is whether the funds advanced to Lots, Inc., by petitioner for development of the Colonial Park subdivision were in reality loans, as petitioner contends, so that the interest paid thereon is deductible by Lots, Inc., or whether, as respondent contends, they were capital contributions and the distributions to petitioner were in the nature of dividends.
Several principal tests have been laid down by the courts for determining this question. One of these is the true intention of the parties; that is, whether the advances to the corporation were intended to…
2Cases cited21 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Anderson v. HelveringSupreme Court of the United States · 1940
- Thomas v. PerkinsSupreme Court of the United States · 1937
- Schnitzer v. CommissionerUnited States Tax Court · 1949
- United States v. Victor H. And Elsie Akin, Fred C. And Alice M. Kluver, E.F. And Gladys MunroeCourt of Appeals for the Tenth Circuit · 1957
16 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Foster v. Comm'rUnited States Tax Court · 1983
- B. Forman Co. v. CommissionerCourt of Appeals for the Second Circuit · 1972
- Florida Publishing Co. v. CommissionerUnited States Tax Court · 1975
- Tampa & G. C. R. Co. v. CommissionerUnited States Tax Court · 1971
- B. Forman Company, Inc. v. Commissioner of Internal Revenue, McCurdy & Company, Inc. v. Commissioner of Internal Revenue, B. Forman Company, Inc. v. Commissioner of Internal Revenue, McCurdy & Company, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1972
7 more not listed; retrieve them via the Exa API.