Earle Real Estate Co. v. Commissioner

Opinion

KERN, Judge: Respondent's determination of deficiencies in petitioner's income tax for the year 1943 in the sum of $67,688.72, and in declared value excess profits tax of $33,315.89, are here at issue. The greater part of these deficiencies arises by reason of respondent's determination that:

"(a) Net income for the year 1943 is increased in the amount of $264,032.06, in order to reflect gain realized on distribution and/or disposition of property located at 1911-13 Second Avenue, North, Birmingham, Alabama. This gain is computed as follows:

A stipulation of facts was filed herein by the parties and we find the facts to be as stipulated.

The facts stipulated disclose that petitioner corporation in the taxable year made a distribution in kind to its stockholders of certain real estate owned by it. Its basis as to this property and the fair market value*181 thereof was as determined by respondent.

The primary issue presented is whether petitioner corporation realized taxable income by a distribution in kind to its stockholders of property which, at the time of distribution, had a fair market value in excess of the corporation's adjusted basis.

Respondent has not filed a brief herein and has indicated that he will file none.

On the authority of , we decide the issue first presented in favor of petitioner. See ; . Cf. .

It is therefore unnecessary to consider petitioner's alternative contentions.

Decision will be entered under Rule 50.