United States Supreme Court Cases & Opinions

U.S. Supreme Court

Magruder v. Washington, Baltimore & Annapolis Realty Co., 316 U.S. 69 (1942)

Magruder v. Washington, Baltimore & Annapolis Realty Co.

No. 601

Argued March 9, 10, 1942

Decided April 13, 1942

316 U.S. 69

Syllabus

1. A corporation which was organized for the purpose of liquidating the properties of another corporation, and which, since its organization, has been carrying on negotiations for the sale of the properties, selling them from time to time as satisfactory offers are received, and renting unsold properties under short term leases in an attempt to earn the carrying charges pending ultimate sale, was "carrying on

Page 316 U. S. 70

or doing business" within the meaning of provisions of the Revenue Act of 1935, and subsequent Revenue Acts, imposing a tax on the capital stock of every domestic corporation "carrying on or doing business" during the tax year. P. 316 U. S. 71.

2. The provision of the Treasury Regulations that "doing business" within the meaning of the capital stock tax provisions of the Revenue Act of 1935, and subsequent Revenue Acts, includes activities of a corporation engaged in "liquidation . . . of properties taken over from another corporation" is valid and applicable to the corporation here involved. P. 316 U. S. 72.

120 F.2d 441, reversed.

Certiorari, 314 U.S. 601, to review the affirmance of a judgment for the taxpayer, 35 F.Supp. 340, in a suit for refund of capital stock taxes.