The Board of Trade of the City of Chicago and Subsidiaries - Page 27

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          fees, although earmarked for capital expenditures, could not be             
          treated as capital contributions because the members had no                 
          equity interest in the club and received no legal entitlement for           
          the payment of the fees other than access to the club and the               
          right to vote for the board of directors.  The court commented              
          that the earmarking of the payments for capital expenditures was            
          relevant and pertinent, but not determinative of, a contribution            
          to capital.  Id at 675.                                                     
               In Affiliated Government Employees Distrib. Co. v.                     
          Commissioner, 37 T.C. 909 (1962), affd. 322 F.2d 872 (9th Cir.              
          1963), we addressed whether membership fees paid to the taxpayer,           
          a nonstock membership corporation operating department stores for           
          the exclusive use of its members and their guests, were                     
          contributions to capital.  We held that the fees were payments              
          for the privilege of shopping at the taxpayer’s stores and were             
          not contributions to capital because the members were not                   
          entitled to share in the profits of the enterprise and had no               
          assurance of a share in the dissolution proceeds because the                
          memberships were nonassignable and terminated at death.  Id. at             
          918.                                                                        
               In Oakland Hills Country Club v. Commissioner, 74 T.C. 35              
          (1980), we denied a country club's motion for summary judgment,             
          holding that a "proprietary interest" is not sufficient to turn a           
          membership fee into a capital contribution.  However, the members           





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