Hagist Ranch, Incorporated v. C.I.R

4 Citing cases

  1. Britt v. United States

    431 F.2d 227 (5th Cir. 1970)   Cited 21 times
    Holding that "[b]usiness activity is required for recognition of the corporation as a separate taxable entity; the activity may be minimal."

    The court held that the corporation possessed all the characteristics of a corporation actually carrying on business and the loss therefore must fall on the corporation and not the taxpayer. In Hagist Ranch Inc. v. Commissioner of Internal Revenue, 7 Cir. 1961, 295 F.2d 351, the court had little difficulty in finding the requisite business activity to require corporate recognition. There, a corporation formed for the purpose of holding property in order to provide for the orderly liquidation of a decedent's estate had entered into extensive leasing arrangements as well as buying and selling of additional properties.

  2. Carver v. United States

    412 F.2d 233 (Fed. Cir. 1969)   Cited 17 times

    For the proposition that the Commissioner was so warranted, defendant relies on the landmark case of Moline Properties, Inc. v. Commissioner of Internal Revenue, 319 U.S. 436, 63 S.Ct. 1132, 87 L.Ed. 1499 (1943) and a line of cases resting thereon. Defendant's citations include: National Carbide Corp. v. Commissioner of Internal Revenue, 336 U.S. 422, 69 S.Ct. 726, 93 L.Ed. 779 (1949); Love v. United States, 95 F. Supp. 919, 119 Ct.Cl. 384 (1951); Given v. Commissioner of Internal Revenue, 238 F.2d 579 (8th Cir. 1956); Skarda v. Commissioner of Internal Revenue, 250 F.2d 429 (10th Cir. 1957); Commissioner of Internal Revenue v. State-Adams Corp., 283 F.2d 395 (2d Cir. 1960), cert. denied, 365 U.S. 844, 81 S.Ct. 802, 5 L.Ed.2d 809 (1961); Hagist Ranch, Inc. v. Commissioner of Internal Revenue, 295 F.2d 351 (7th Cir. 1961); and Tomlinson v. Miles, 316 F.2d 710 (5th Cir.) cert. denied, 375 U.S. 828, 84 S.Ct. 71, 11 L.Ed.2d 60 (1963). The corporation in Moline was organized as a security device in the purchase of real property, with control of it in the lender.

  3. Onyeani v. Comm'r

    T.C. Memo. 2020-15 (U.S.T.C. Jan. 16, 2020)

    come tax returns; (2) filed Federal employment tax returns; (3) elected officers and directors; (4) had a formal capital structure; (5) maintained books and records; (6) held meetings and kept minutes thereof; (7) had employees to whom it paid salaries; (8) had a separate business address and phone number; (9) was properly capitalized; and (10) distinguished between corporate and personal funds. See, e.g., Noonan v. Commissioner, 451 F.2d 992 (9th Cir. 1971) (per curiam), aff'g 52 T.C. 907 (1969); Achiro v. Commissioner, 77 T.C. 881, 901 (1981); Russell v. Commissioner, T.C. Memo. 2019-146, at *10; Robucci v. Commissioner, T.C. Memo. 2011-19, 101 T.C.M. (CCH) 1060, 1064; Pappas v. Commissioner, T.C. Memo. 2002-127, 83 T.C.M. (CCH) 1713, 1719-1720; Martin v. Commissioner, T.C. Memo. 1999-193, 77 T.C.M. (CCH) 2152, 2155; Visnapuu v. Commissioner, T.C. Memo. 1987-354, 53 T.C.M. (CCH) 1381, 1387; Hagist Ranch, Inc. v. Commissioner, T.C. Memo. 1960-206, 19 T.C.M. (CCH) 1123, 1129, aff'd, 295 F.2d 351 (7th Cir. 1961); see also Kimbrell v. Commissioner, 371 F.2d 897, 902 (5th Cir. 1967) (disregarding a corporation that displayed some corporate formalities because it engaged in no substantial business transactions), aff'g T.C. Memo. 1965-115. None of these factors supports AHPE's status as a separate taxable entity.

  4. Bertoli v. Comm'r of Internal Revenue

    103 T.C. 29 (U.S.T.C. 1994)   Cited 11 times

    When called upon to determine whether or not a particular entity (i.e., a partnership) will be recognized for tax purposes, the courts subsequent to Moline Properties, have used a two-prong test—the entity (1) must be created for a business purpose, or (2) must carry on a business activity. See Hagist Ranch, Inc. v. Commissioner, 295 F.2d 351 (7th Cir.1961), affg. T.C.Memo. 1960–206; O'Neill v. Commissioner, 271 F.2d 44, 49 (9th Cir.1959), affg.