11
a. Respondent’s Contention That Park Place Does Not Control
Respondent contends that the fact that we applied the Puget
Sound factors in Trump Village Section 3, Inc. v. Commissioner,
supra, shows that Park Place does not establish that section 216
cooperative housing corporations are subject to subchapter T and
that we should apply the Puget Sound factors to decide whether a
section 216 cooperative housing corporation operates on a
cooperative basis for purposes of subchapter T. We disagree.
There is no indication that the parties in Trump Village
asked the Court to consider (or that the Court did consider)
whether Park Place establishes that a section 216 cooperative
housing corporation operates on a cooperative basis for purposes
of section 1381. Thus, Trump Village does not bar our reliance
on Park Place.
Sections 216 and 1381 both use the term "cooperative".
Congress' use of the same word in both sections supports the
inference that a “cooperative” housing corporation under section
216 is operated on a “cooperative” basis for purposes of section
1381. The legislative history of the Revenue Act of 1942, ch.
19, tit. I, sec. 128, 56 Stat. 798, 826, which added section
23(z) (the predecessor to section 216) to the Code, states:
The definitions of the terms "cooperative apartment
corporation" and "tenant-stockholder" prescribe certain
standards which are designed to safeguard the revenue by
assuring that the apartment corporations involved are bona
fide cooperative apartment corporations and that the
individuals entitled to deductions under section 23(z) are
bona fide tenant-stockholders of such corporations.
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