Question

Following a style similar to the technique set forth in Legal Research, Writing & Analysis, prepare a brief of the following case: Moline Properties, Inc. v. Commissioner of Internal Revenue 319 U.S. 436

Answer 1

Facts of the case:

The petitioner was of the view that tax on the gains of the property sold by the corporation in US will be taxable in the hands of the stockholder as all the shares for the corporation is being held by the single stokcholder. This was the decision of the Board of the Tax of Appeals based on the stand they took.

Judicial Discussions:

The Moline Properties, Inc. v. Commissioner, 319 U.S. 436 (1943) was taken by the Supreme court of US who has check on the facts of the case and said that the corporation was not a mere agent of the stockholder and needed to be treated separately. Hence the fact that although the corporation was completely owned by the stockholder but this could not be treated as the income of the individual.

Conclusion/Decision

The court has reversed the decision of the tax appeals and has stated that gains of the sale would be taxab;e in the hands of the corporation and not individual.