Elliot Knitwear Profit Sharing Plan v. Commissioner
United States Tax Court
Petitioner is the trustee of a qualified profit sharing plan. Pursuant to his authority as trustee, petitioner purchased securities on margin for the trust account. The purchases were made for the exclusive benefit of plan participants and their beneficiaries.
Read the full summary
Petitioner is the trustee of a qualified profit sharing plan. Pursuant to his authority as trustee, petitioner purchased securities on margin for the trust account. The purchases were made for the exclusive benefit of plan participants and their beneficiaries. Respondent determined that the securities were debt-financed property under sec. 514, I.R.C. 1954, 1Unless otherwise stated, all statutory references are to the Internal Revenue Code of 1954, as in effect for the taxable year at issue. and that the income earned on those securities was taxable under sec. 511 to the extent of the…
1Opinion of the Court
OPINION
Tietjens, Judge:
Respondent has determined a deficiency in petitioner’s Federal income tax for the taxable year ending April 30, 1972, in the amount of $20,719. The issue is whether income from securities purchased on margin by a qualified profit sharing plan is subject to the tax imposed by section 511 on unrelated business income.
This case was fully stipulated pursuant to Rule 122, Tax Court Rules of Practice and Procedure. The stipulation of facts and attached exhibits are incorporated herein by reference.
Petitioner Herman Gross is the trustee of Elliot Knitwear Profit Sharing Plan.…
2Cases cited3 opinions
- Groetzinger v. CommissionerUnited States Tax Court · 1977
- Driscoll v. Washington County Fire Ins.Court of Appeals for the Third Circuit · 1940
- Rowley United Pension Fund v. CommissionerUnited States Tax Court · 1975
3Cited by4 opinions
- Kern County Electrical Pension Fund v. CommissionerUnited States Tax Court · 1991
- Elliot Knitwear Profit Sharing Plan v. CommissionerUnited States Tax Court · 1979
- Kern County Electrical Pension Fund v. CommissionerUnited States Tax Court · 1991
- Southwest Tex. Elec. Coop. v. CommissionerUnited States Tax Court · 1994