Day v. Commissioner
United States Tax Court
A corporation organized for the development of real estate subdivisions and the construction and sale of houses was liquidated in 1963, after it had realized 100 percent, 93 percent, and 56 percent, respectively, of the taxable income to be derived from its three projects.
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A corporation organized for the development of real estate subdivisions and the construction and sale of houses was liquidated in 1963, after it had realized 100 percent, 93 percent, and 56 percent, respectively, of the taxable income to be derived from its three projects. Held, the corporation was not a collapsible one within the meaning of sec. 341, I.R.C. 1954, because, at the time it was liquidated, it had already realized a substantial part of the taxable income to be derived from its real estate subdivision property.
1Opinion of the Court
OPINION
Feati-ierston, Judge:
Respondent determined a deficiency in petitioners’ income tax for 1963 in the amount of $344,639.04. The only issue is whether Day Enterprises, Inc., was a collapsible corporation within the meaning of section 3411 at the time of its liquidation, so that the gain realized by petitioners on the liquidation is taxable as ordinary income rather than capital gain.
All of the facts are stipulated.
George W. Day (hereinafter petitioner) and Muriel E. Day, husband and wife, filed a joint Federal income tax return for 1963 with the district director of internal revenue, San…
2Cases cited8 opinions
- J. D. Abbott and Kathryn Abbott v. Commissioner of Internal Revenue, Carl M. Wolfe and Mary E. Wolfe v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Abbott v. CommissionerUnited States Tax Court · 1957
- Commissioner of Internal Revenue v. James B. Kelley and Lena S. Kelley, and John Waltman and Doris WaltmanCourt of Appeals for the Fifth Circuit · 1961
- Kelley v. CommissionerUnited States Tax Court · 1959
- Levenson v. United StatesDistrict Court, N.D. Alabama · 1957
3 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Manassas Airport Industrial Park, Inc. v. CommissionerUnited States Tax Court · 1976
- Day v. CommissionerUnited States Tax Court · 1970
- Manassas Airport Industrial Park, Inc. v. CommissionerUnited States Tax Court · 1976