Malta Temple Ass'n v. Commissioner
United States Board of Tax Appeals
Corporate organization expenses may not be included in the basis for determining profit or loss upon the sale of property acquired subsequent to incorporation, but constitute a capital expenditure deductible under the loss provisions of the statute upon dissolution of the corporation and abandonment of its corporate franchise.
1Opinion of the Court
*410OPINION.
Smith :
We think that petitioner’s contention that the organization expenses incurred by it at the time of incorporation constitute capital expenditures is sound. To this effect see F. Tinker & Sons Co., 1 B. T. A. 799; Logan-Gregg Hardware Co., 2 B. T. A. 647; First National Bank of St. Louis, 3 B. T. A. 807; Emerson Electric Mfg. Co., 3 B. T. A. 932, and later cases. In Hotel de France Co., 1 B. T. A. 28, we held that corporate organization expenses were no part of the cost of a leasehold acquired at the time of incorporation and could not be included in the basis to be used in…
2Cited by21 opinions
- Hollywood Baseball Ass'n v. CommissionerUnited States Tax Court · 1964
- Vulcan Materials Company v. United StatesCourt of Appeals for the Fifth Circuit · 1971
- Warsaw Photographic Associates, Inc. v. CommissionerUnited States Tax Court · 1985
- Van Keuren v. CommissionerUnited States Board of Tax Appeals · 1933
- McCrory Corporation v. United StatesCourt of Appeals for the Second Circuit · 1981
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