Case law

In re United States Housing Authority

39 Ohio Law. Abs. 371 · United States Board of Tax Appeals · Apr 12, 1943

nothing in this act contained shall be construed ta prevent any officers, employees or inmates of any national asylum for disabled volunteer soldiers located on any such land over which jurisdiction is ceded herein, who are qualified … The provisions of this statute are merely declaratory of the immunity recognized by the courts. The exception from such immunity of the real estate was also made in M’Culloch v Maryland, supra.

Opperman Coal Co. v. Commissioner

6 B.T.A. 1215 · United States Board of Tax Appeals · May 4, 1927

by other well established and uncon-troverted facts. … The evidence also established the fact that the Spruce Bend Lease, in close proximity to petitioner’s property, was sold in 1915 for $250,000.

House & Herrmann v. Commissioner

13 B.T.A. 621 · United States Board of Tax Appeals · Sep 27, 1928

House & Herrmann was established in 1885, and maintained its business at the present address of .the petitioner or in a store in the same block. … The witness who qualified to express an opinion as to the value of the *625 firm’s good will at the time the petitioner acquired it for stock, testified that it was worth -$50,000.

Bear Gulch Water Co. v. Commissioner

40 B.T.A. 1281 · United States Board of Tax Appeals · Dec 26, 1939

It is the established rule of law that a state, or a political subdivision of a state, or a governmental agency of a political subdivision is not within the taxing power of the Federal Government. … Section 116 (d) clearly contains an express limitation that only income accruing to the state is exempt.

Cohen v. Commissioner

20 B.T.A. 647 · United States Board of Tax Appeals · Sep 3, 1930

There must be a real controversy the facts of which must be established either by a bona 'fide stipulation or by evidence. Ohio Clover Leaf Dairy Co., 8 B. T. A. 1249; 9 B. T. A. 433; James R. Parkey, 16 B. T. … And to tax the gain as a dividend is clearly not unconstitutional, however it might *649 be if, as in the hypothetical case recited by petitioners’ counsel, a real loss were attempted to be taxed as gain.

Ziegler v. Commissioner

1 B.T.A. 186 · United States Board of Tax Appeals · Dec 18, 1924

The taxpayer was entitled, under the terms of the will, to qualify as a trustee, but had not qualified. … The addition of $228,650.77 to the taxpayer’s gross income for 1919 was clearly erroneous, and any deficiency in tax resulting from such addition must be disallowed.

Bruckner v. Commissioner

20 B.T.A. 419 · United States Board of Tax Appeals · Jul 30, 1930

SteRNHagen : The income of the trust established by the decedent is taxable by virtue of the Revenue Act of 1921, section 219. … The qualifying words “organized and operated” were, we think, meant to require that its operations at all stages should carry out its exclusively charitable purpose, that both the organization and its' operations should be

Reed v. Commissioner

13 B.T.A. 513 · United States Board of Tax Appeals · Sep 25, 1928

It has not been alleged nor suggested that the petitioner was an “ officer ” of the Commonwealth of Pennsylvania and clearly he was not; hence, our consideration of the issue will be confined to the two propositions of the … And we have repeatedly held that the salary of an “ employee ” of a State, or political subdivision thereof, is immune from the Federal income tax. P. Frank Durkin, 4 B. T. A. 743; John E. Matthews, 8 B. T.

Hittell v. Commissioner

33 B.T.A. 276 · United States Board of Tax Appeals · Oct 24, 1935

Whether any particular activity of an agency or instrumentality of a state is governmental, and thus immune from Federal taxation, “ is a question which compels consideration of the nature of the activity.” Helvering v. … Such affidavits also clearly establish that the board of local improvements retained and exercised the right to control the manner and means whereby the work * * * was carried on.

Illinois Merchants Trust Co. v. Commissioner

14 B.T.A. 890 · United States Board of Tax Appeals · Dec 21, 1928

It seems clear that a court of equity would appoint a qualified trustee to execute the trust, if such were intended. … Petitioner urges that payments made after this alteration are clearly annuity payments, as they are stated sums rather than dependent upon income receipts.

F. J. Ross Co. v. Commissioner

7 B.T.A. 196 · United States Board of Tax Appeals · Jun 7, 1927

In addition to Seymour and Weaver, who were designated as officers and apparently were stockholders only to the extent necessary to qualify them as directors, there were “ account executives ” and other employees who, during … Boss by the petitioner was not intended to represent and did not represent the full measure of his compensation and that from the very first it was clearly understood, and the directors of the petitioner all agreed that,

Wilkerson Daily Corp. v. Commissioner

42 B.T.A. 1266 · United States Board of Tax Appeals · Nov 22, 1940

What would be reasonable in one situation or for one business might be clearly unreasonable in another.” … In the United Business Corporation case, supra, money was loaned to an individual who held all the capital stock except for three qualifying shares.

Sand Springs Railway Co. v. Commissioner

21 B.T.A. 1291 · United States Board of Tax Appeals · Jan 21, 1931

Charles Page was the owner of all the stock, except qualifying shares, of the Sand Springs Railway Co.- He was also the founder and one of the incorporators of the Sand Springs Home, which we held in 6 B. T. … This, together with the fact of nonpayment during the taxable years, demonstrates clearly that payment of the light and power earnings *1316 to the Home was not a necessary condition to the operation of the lighting and power

Emerit E. Baker, Inc. v. Commissioner

40 B.T.A. 555 · United States Board of Tax Appeals · Sep 13, 1939

However, to qualify as an exempt corporation a taxpayer must meet a twofold test. It must be both organized and operated for the purposes specified in the statute. James Sprunt Benevolent Trust, 20 B. T. … Petitioner suggests in its brief that it is not impossible at this time to make such a segregation of the assets and points out that in such event the petitioner as a separate corporate entity would clearly be exempt from

Sand Springs Ry. v. Commissioner

21 B.T.A. 1291 · United States Board of Tax Appeals · Jan 21, 1931

Charles Page was the owner of all the stock, except qualifying shares, of the Sand Springs Railway Co.- He was also the founder and one of the incorporators of the Sand Springs Home, which we held in 6 B. T. … This, together with the fact of nonpayment during the taxable years, demonstrates clearly that payment of the light and power earnings *1316 to the Home was not a necessary condition to the operation of the lighting and power

Adjustment Bureau of St. Louis Asso., etc. v. Commissioner

21 B.T.A. 232 · United States Board of Tax Appeals · Nov 7, 1930

Louis Association of Credit Men and nine shares were issued without consideration to the petitioner's nine directors as qualifying shares. … The facts in the case at bar clearly establish that petitioner earned net profits in carrying on the business it was organized to engage in, which business is one ordinarily carried on for the purpose of making an income.

Oil Shares, Inc. v. Commissioner

29 B.T.A. 664 · United States Board of Tax Appeals · Jan 5, 1934

. * * * « * * * * In reply you are advised that your employment of an inventory basis for income tax purposes is dependent upon whether or not you can qualify as a dealer in securities as that term is defined in Article 105 … The proof clearly shows, however, that the petitioner bought and *668 sold securities solely for its own account.

Adjustment Bureau of St. Louis Ass'n of Credit Men v. Commissioner

21 B.T.A. 232 · United States Board of Tax Appeals · Nov 7, 1930

The facts in the case at bar clearly establish that petitioner earned net profits in carrying on the business it was organized to engage in, which business is one ordinarily carried on for the purpose of making an income. … The facts of record establish that petitioner’s net profits were used in rendering services at cost and at less than cost or entirely gratis to the members of the St.

Arrowhead Mills, Inc. v. Commissioner

5 B.T.A. 382 · United States Board of Tax Appeals · Nov 9, 1926

exceed the par value of the original stock or shares specifically issued therefor, unless the actual cash value of such tangible property at the time paid in is shown to the satisfaction of the Commissioner to have been clearly … We have no doubt that both of these witnesses are qualified, both by education and experience, to testify concerning the values of such property, but their testimony does not convince us of the value claimed.

De Velin v. Commissioner

22 B.T.A. 1400 · United States Board of Tax Appeals · Apr 30, 1931

Furthermore, no evidence was introduced to establish the value of the fee itself. Therefore, we can allot no portion of the royalties,to a return of capital, but must include the entire amounts in income. … The character of the mining risk here involved was discussed by qualified experts called respectively by both sides.