Veterans Foundation v. Commissioner of Internal Revenue

PICKETT, Circuit Judge.

This is a petition to review a decision of the Tax Court which determined that for the purpose of computing the petitioner’s income tax for the fiscal year 1958 its basis for the articles which it had sold in its stores was zero. Veterans Foundation, 38 T.C. 66. The taxpayer is a nonprofit corporation which was organized under the laws of Utah with no authorized shares of capital stock. Every member in good standing of the Utah Department of the Disabled American Veterans is also a member of the taxpayer corporation. It operates two stores in Utah for the sole purpose…