The Board of Trade of the City of Chicago and Subsidiaries - Page 39

                                       - 39 -                                         

               We conclude that the transfer fees are primarily paid with             
          an investment motive.  Although there may be some attenuated and            
          incidental senses in which the transfer fees may be paid in                 
          consideration for services rendered and to be rendered, we hold,            
          on balance, that the transfer fees paid to petitioner are paid              
          primarily to reduce petitioner’s mortgage debt, which was                   
          incurred to finance capital improvements.  The transfer fees are,           
          therefore, nontaxable contributions to petitioner's capital and             
          are not includable in gross income.                                         
               To reflect the foregoing,                                              
                                      Decision will be entered for                    
                                      petitioner.                                     

Page:  Previous  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39