Elko Realty Co. v. Commissioner
United States Tax Court
Petitioner, a corporation, acquired all of the stock of two corporations which were operating at a loss at the time of their acquisition and which continued to operate at a loss.
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Petitioner, a corporation, acquired all of the stock of two corporations which were operating at a loss at the time of their acquisition and which continued to operate at a loss. Petitioner filed consolidated returns with the two corporations for the years 1951, 1952, and 1953. Held, the petitioner has failed to show by a preponderance of the evidence that the principal purpose of the acquisitions in question was not the evasion or avoidance of Federal income tax, so that the Commissioner did not err in disallowing, under section 129 of the Internal Revenue Code of 1939, the deduction by the…
1Opinion of the Court
Teain, Judge;
The respondent determined the following deficiencies in the income taxes of the petitioner:
1951_$8, 656.15
1952_ 16,766.11
1953_ 22,369.83
The main question presented is whether the acquisition of certain corporations by the petitioner had as its principal purpose the evasion or avoidance of Federal income tax within the meaning of section 129 of the Internal Revenue Code of 1939.
FINDINGS OF FACT.
Some of the facts are stipulated and are hereby found as stipulated.
The petitioner, Elko Realty Company, is a New Jersey corporation organized in 1923, with principal office at Wildwood,…
2Cases cited1 opinion
- American Pipe & Steel Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1957
3Cited by33 opinions
- J. T. Slocomb Company v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1964
- Hawaiian Trust Company Limited v. United StatesCourt of Appeals for the Ninth Circuit · 1961
- Elko Realty Company v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- R. P. Collins & Co., Inc. v. United StatesCourt of Appeals for the First Circuit · 1962
- Clarksdale Rubber Co. v. CommissionerUnited States Tax Court · 1965
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