Golconda Mining Corp. v. Commissioner
United States Tax Court
Held: (1) The current market value of petitioner's liquid unrelated business assets was properly taken into account in determining that its earnings and profits for 1966 were accumulated beyond the reasonable needs of its business. (2) In view of petitioner's past business operations, it is entirely speculative to estimate the capital gains tax, brokerage costs, and reduction in market value which might be incurred on the disposition of its investment securities.
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Held: (1) The current market value of petitioner's liquid unrelated business assets was properly taken into account in determining that its earnings and profits for 1966 were accumulated beyond the reasonable needs of its business. (2) In view of petitioner's past business operations, it is entirely speculative to estimate the capital gains tax, brokerage costs, and reduction in market value which might be incurred on the disposition of its investment securities. Accordingly, petitioner's motion for reconsideration will be denied.
1Opinion of the Court
SUPPLEMENTAL OPINION
Dawson, Judge:
On May 19,1972, the petitioner filed a motion for reconsideration of the Court’s opinion (58 T.C. 139) filed herein on April 27, 1972, seeking revision of the holding that petitioner is subject to the accumulated-earnings tax for the year 1966. Petitioner filed a memorandum in support of its motion. By order dated May 25, 1972, respondent was directed to file a reply to the motion for reconsideration on or before June 26, 1972. On June 15, 1972, petitioner filed a supplementary memorandum in support of its motion for reconsideration and on June 22, 1972,…
2Cases cited13 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- The Smoot Sand & Gravel Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
- Henry Van Hummell, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1966
- JM Perry & Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1941
- Raymond I. Smith, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1961
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3Cited by14 opinions
- Ivan Allen Co. v. United StatesSupreme Court of the United States · 1975
- Golconda Mining Corporation v. Commissioner of Internal Revenue, Golconda Mining Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1974
- Ready Paving & Constr. Co. v. CommissionerUnited States Tax Court · 1974
- Alex Brown, Inc. v. CommissionerUnited States Tax Court · 1973
- Technalysis Corp. v. CommissionerUnited States Tax Court · 1993
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