Intercounty Operating Corp. v. Commissioner
United States Tax Court
1. Petitioner bought certain tax lien certificates on lands on which taxes were delinquent and on redemption of the certificates by the parties entitled to redeem it received, in addition to the amounts paid for the certificates, certain percentages of those amounts as provided for by the applicable statutes of New York, those percentages representing gains to petitioner.
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1. Petitioner bought certain tax lien certificates on lands on which taxes were delinquent and on redemption of the certificates by the parties entitled to redeem it received, in addition to the amounts paid for the certificates, certain percentages of those amounts as provided for by the applicable statutes of New York, those percentages representing gains to petitioner. Held, that the portion of the gains comprising interest was not in sufficient percentage of petitioner's gross income to bring petitioner within the definition of a personal holding company as set out in section 501 (a) (1)…
1Opinion of the Court
OPINION.
Tyson, Judge:
There is no controversy between the parties as to the excess of the amounts received by petitioner in the taxable years from the redemption of tax liens held by it above the amounts paid by it in the purchase of such liens; and petitioner does not deny that such excess was gain, but denies that it was interest, as is contended by respondent. It is also undisputed that all of petitioner’s outstanding stock was then owned by Hot more than five individuals and that over 94 percent of its gross income for the fiscal year ended January 31, 1940, and over 99 percent of its…
2Cases cited13 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Lyeth v. HoeySupreme Court of the United States · 1938
- United States v. PelzerSupreme Court of the United States · 1941
- United States v. La FrancaSupreme Court of the United States · 1931
- DeGanay v. LedererSupreme Court of the United States · 1919
8 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Hopkins v. CommissionerUnited States Tax Court · 1950
- Sharp v. CommissionerUnited States Tax Court · 1980
- Ashby v. CommissionerUnited States Tax Court · 1961
- Thompson v. CommissionerUnited States Tax Court · 1980
- González Díaz v. DescartesSupreme Court of Puerto Rico · 1954
12 more not listed; retrieve them via the Exa API.