Cooper's Estate v. CIR
| Decision Date | 19 June 1961 |
| Docket Number | 8328.,8327,No. 8295,8295 |
| Citation | 291 F.2d 831 |
| Parties | ESTATE of William P. COOPER, Deceased, Daisy H. Cooper, Executrix, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. PERPETUAL BUILDING AND LOAN ASSOCIATION OF COLUMBIA, Petitioner and Cross-Respondent, v. COMMISSIONER OF INTERNAL REVENUE, Respondent and Cross-Petitioner. COOPER AGENCY, Petitioner and Cross-Respondent, v. COMMISSIONER OF INTERNAL REVENUE, Respondent and Cross-Petitioner. |
| Court | U.S. Court of Appeals — Fourth Circuit |
E. W. Mullins and Charles F. Cooper, Columbia, S. C. (Nelson, Mullins, Grier & Scarborough, Columbia, S. C., on the brief), for petitioner and petitioner and cross-respondent.
Karl Schmeidler, Atty., Dept. of Justice, Washington, D. C. (Louis F. Oberdorfer, Asst. Atty. Gen., Lee A. Jackson and Meyer Rothwacks, Attys., Dept. of Justice, Washington, D. C., on the brief), for respondent and respondent and cross-petitioner.
Before SOPER, HAYNSWORTH and BOREMAN, Circuit Judges.
These cases relate to the income tax liability of certain corporations controlled by three brothers — Frank B. Cooper, Charles F. Cooper, and James D. Cooper — whose tax liabilities from activities in the development of real estate and in other fields were considered by us in Biltmore Homes, Inc. et al. v. Commissioner, 4 Cir., 1961, 288 F.2d 336. In that case we affirmed the decision of the Tax Court, which held that profits earned in 1947 and 1948 in the development of a tract of land by Biltmore Homes, Inc., a corporation owned by the three brothers, were not chargeable to the Perpetual Building and Loan Association of Columbia or to the Mutual Savings and Loan Company, which had been certified as exempt from Federal income taxes, but were in fact chargeable to the three brothers.
In case No. 8295 the Tax Court held the estate of William P. Cooper, deceased, liable for income taxes on dividends declared by Perpetual in his lifetime on certain prepaid instalment share accounts held by him but not payable or paid until after his death.
In case No. 8327 now before us on this appeal the Tax Court held that the retroactive withdrawal of the exemption of Perpetual from Federal income taxation by the Commissioner was a valid exercise of its power under the taxing statute, since the corporation lacked the essential characteristics of a legitimate building and loan association and since it had been used by the three brothers as a means of...
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Gamble v. Commissioner
...24,015, 33 T.C. 709, 715 (1960), affd. per curiam sub nom. 61-2 USTC ¶ 9548, Cooper's Estate v. Commissioner 61-2 USTC ¶ 9548, 291 F. 2d 831 (4th Cir. 1961). Indebtedness is defined as an unconditional and legally enforceable obligation for the payment of money. Autenreith v. Commissioner 4......
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... ... See, Biltmore Homes, Inc. v. C. I. R. (C.A.S.C. 1961), 288 F.2d 336, cert. den. 368 U.S. 825, 82 S.Ct. 46, 7 L.Ed.2d 30, and Cooper's Estate v. C. I. R. (C.A.S.C.1961), 291 F.2d 831, cert. den. 368 U.S. 919, 82 S.Ct. 241, 7 L.Ed.2d 135. Perhaps its previous lack of success under this ... ...
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