Troy State University v. Commissioner
United States Tax Court
Two individuals transferred to petitioner, an educational institution managed and controlled by a State board of education, all the issued and outstanding stock of T, a corporation which held and rented hospital facilities.
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Two individuals transferred to petitioner, an educational institution managed and controlled by a State board of education, all the issued and outstanding stock of T, a corporation which held and rented hospital facilities. Immediately after the transfer, petitioner caused T to be liquidated and to distribute to petitioner all of its assets, including certain property described in sec. 1245(a)(3), I.R.C. 1954. Held, neither sec. 115(a)(1), I.R.C. 1954, nor constitutional limitations on Federal taxing power exempt from tax the amount treated as gain by sec. 1245, I.R.C. 1954.
1Opinion of the Court
OPINION
Tietjens, Judge:
The Commissioner determined that Troy State University (hereafter petitioner) is liable for $5,559.26, plus interest, as transferee of assets of Beard Memorial Hospital, 3hc. (hereafter transferor), for the taxable period March 1, 1966, to October 1, 1966.
The issue for decision is whether amounts treated as gain under section 1245 1 are excludable from transferor’s gross income by reason of either section 115 (a) (1) or constitutional limitations on the Federal power to tax State instrumentalities.
This case was fully stipulated pursuant to Rule 122, Tax Court Rules of…
2Cases cited30 opinions
- Flint v. Stone Tracy Co.Supreme Court of the United States · 1911
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