- 2 - All section references are to the Internal Revenue Code in effect for the taxable year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure, unless other- wise indicated. Petitioner seeks to have its separate existence disregarded and its realized gain on the 1993 sale of certain improved land treated as income taxable to a partnership, because its incorporators believed that they had created a partnership, not a corporation. No issue has been raised as to respondent's determinations that petitioner's basis in the property was $56,697 and that the sale resulted in a taxable gain in the amount of $112,053. Some of the facts have been stipulated by the parties and are so found. The stipulation of facts filed by the parties and the accompanying exhibits are incorporated herein by this reference. Background Petitioner was incorporated under the laws of the State of Alabama on January 20, 1971. The corporate charter contained a broad statement of purposes, including: To acquire lands; to improve, develop, and manage real estate; to hold stock; to borrow or lend money; and to mortgage, sell, lease, or otherwise dispose of any lands. The charter also states that petitioner's duration was perpetual.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011