Sherwood Memorial Gardens, Inc. v. Commissioner
United States Tax Court
1. Held, on the facts, payments made by petitioner, a for-profit cemetery corporation, to its certificate-of-indebtedness holders and deducted by it during the taxable years as the cost of land do not represent deductible land costs but rather nondeductible distributions made with respect to the equity investment which such certificate holders had in petitioner. 2. Held, further, respondent correctly determined both the method for ascertaining petitioner's development costs…
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1. Held, on the facts, payments made by petitioner, a for-profit cemetery corporation, to its certificate-of-indebtedness holders and deducted by it during the taxable years as the cost of land do not represent deductible land costs but rather nondeductible distributions made with respect to the equity investment which such certificate holders had in petitioner. 2. Held, further, respondent correctly determined both the method for ascertaining petitioner's development costs and the way in which such costs should be taken into account for tax purposes.
1Opinion of the Court
Dawson, Judge;
Respondent determined deficiencies in petitioner’s income tax for the taxable years and in tbe amounts set forth below:
Taxable year ending September 30: Deficiency
1957_$2,906.36
1958_ 31, 627.52
1959_ 17,488. 83
The issues presented for decision are: (1) Whether so-called certificates of indebtedness issued by petitioner as an integral step in tbe formation and commencement of its business are in substance and reality evidences of equity investment placed at tbe risk of petitioner’s new venture, thus rendering payments made in respect to such certificates an improper addition to…
2Cases cited23 opinions
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Gooding Amusement Co. v. CommissionerUnited States Tax Court · 1954
- Carl E. Weller and Emily I. Weller v. Commissioner of Internal Revenue, W. Stuart Emmons v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1959
- Brown Shoe Co. v. CommissionerSupreme Court of the United States · 1950
- Emmons v. CommissionerUnited States Tax Court · 1958
18 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Burr Oaks Corp. v. CommissionerUnited States Tax Court · 1965
- Knollwood Memorial Gardens v. CommissionerUnited States Tax Court · 1966
- Plantation Patterns, Inc. v. CommissionerUnited States Tax Court · 1970
- Linwood Cemetery Asso. v. CommissionerUnited States Tax Court · 1986
- Burr Oaks Corp. v. CommissionerCourt of Appeals for the Seventh Circuit · 1966
22 more not listed; retrieve them via the Exa API.