Briarcliff Inv. Co. v. Commissioner
United States Board of Tax Appeals
Brokerage commissions paid by an investment corporation "engaged in the real estate business" in connection with two real estate transactions in which larger properties were acquired for cash and other smaller properties, held not deductible when paid.
1Opinion of the Court
*1270OPINION.
SteRnhagen:
The Commissioner determined a deficiency of $577.68 in petitioner’s income tax for 1930. The attack is on the disallowance of a deduction of brokerage commissions paid in two real estate transactions. The facts were stipulated.
The petitioner, a Georgia corporation, was, during 1930, “ engaged in the real estate business.” Its books were on the cash and not an accrual basis. It acquired the Robert Fulton Hotel property for $654,323.33, being cash $100,266.08, liabilities assumed $479,057.25, and Union Stock Yards $75,000. To a broker petitioner paid “a commission of $3,000…
2Cases cited4 opinions
- Giffin v. CommissionerUnited States Board of Tax Appeals · 1930
- Odorono Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Burman v. CommissionerUnited States Board of Tax Appeals · 1931
- Dart v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by1 opinion
- Briarcliff Inv. Co. v. CommissionerUnited States Board of Tax Appeals · 1934