Buhler Mortg. Co. v. Commissioner
United States Tax Court
Petitioner, a subch. S corporation, by its activities produced promissory notes secured by deeds of trust which it then sold to insurance companies at a discount and was granted the right to service said loans.
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Petitioner, a subch. S corporation, by its activities produced promissory notes secured by deeds of trust which it then sold to insurance companies at a discount and was granted the right to service said loans. Held, such notes were "securities" within the meaning of sec. 1372(e)(5), I.R.C. 1954, and sec. 1.1372-4(b)(5)(viii), Income Tax Regs., and therefore more than 20 percent of petitioner's gross receipts were personal holding company income and its election is terminated. Held, further, aforesaid regulation promulgates a valid interpretation of the term "securities" as applied to the…
1Opinion of the Court
FoRKesteR, Judge:
Respondent has determined deficiencies in petitioner’s Federal income taxes for the fiscal years ended October 31, 1964 and 1965, in the amounts of $20,716.52, and $30,182.19, respectively. Petitioner has conceded one of the issues, consequently the only issue remaining for consideration is whether petitioner’s subchapter S status terminated by virtue of its section 1372(e) (5)1 income being greater than 20 percent of its gross receipts. Resolution of this issue i,s dependent upon whether receipts from sales of certain notes secured by deeds of trust are to be considered as a…
2Cases cited5 opinions
- Gamman v. CommissionerUnited States Tax Court · 1966
- Wilbur v. CommissionerUnited States Tax Court · 1964
- A. & N. Furniture & Appliance Company v. United StatesDistrict Court, S.D. Ohio · 1967
- Feingold v. CommissionerUnited States Tax Court · 1968
- Valley Loan Association v. United StatesDistrict Court, D. Colorado · 1966
3Cited by30 opinions
- Jasper L. House, Jr., and Edra F. House v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1972
- Clark v. CommissionerUnited States Tax Court · 1972
- Marshall v. CommissionerUnited States Tax Court · 1973
- Davenport v. CommissionerUnited States Tax Court · 1978
- Disabled American Veterans v. CommissionerUnited States Tax Court · 1990
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