Fidelity Sav. & Loan Co. v. Commissioner
United States Board of Tax Appeals
1. Petitioner in 1936 and 1937 made all mortgage loans except one to borrowers who were not stockholders. Ownership of stock in petitioner is the method of acquiring membership and the terms "member" and "stockholder" mean the same.
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1. Petitioner in 1936 and 1937 made all mortgage loans except one to borrowers who were not stockholders. Ownership of stock in petitioner is the method of acquiring membership and the terms "member" and "stockholder" mean the same. Held, that petitioner is not exempt from Federal income tax under section 101(4) of the Revenue Act of 1936, since substantially all of its business was not confined to making loans to members. 2. Petitioner sold real property acquired through foreclosure, giving a deed and taking a small cash payment, an installment note for the balance, and a purchase money…
1Opinion of the Court
*477OPINION.
Hakron :
Issue 1.—Petitioner contends that it is exempt from Federal income tax under the provisions of section 101 (4) of the Revenue Act of 1936.1
In the pleadings respondent denies that petitioner is a building and loan association, but in his brief respondent limits his argument to the contention that petitioner is not exempt from taxation under the statute because it fails to meet one of the qualifications therein, namely, that substantially all of its business is confined to making loans to its members. Respondent contends that, since practically all of the borrowers of petitioner…
2Cases cited9 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- United States v. Cambridge Loan & Building Co.Supreme Court of the United States · 1928
- Kadish v. Garden City Equitable Loan & Building Ass'nIllinois Supreme Court · 1894
- Appeal of ChristianSupreme Court of Pennsylvania · 1883
- Lilley Building & Loan Co. v. MillerDistrict Court, S.D. Ohio · 1922
4 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Perpetual Bldg. & Loan Asso. v. CommissionerUnited States Tax Court · 1960
- Citizens Mut. Inv. Assn. v. CommissionerUnited States Tax Court · 1943
- Fidelity Sav. & Loan Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Perpetual Bldg. & Loan Asso. v. CommissionerUnited States Tax Court · 1960