Swank & Son, Inc. v. United States

522 F.2d 981, 51 Oil & Gas Rep. 615, 36 A.F.T.R.2d (RIA) 5610, 1975 U.S. App. LEXIS 13195

Opinion

OPINION

Before KOELSCH and DUNIWAY, Circuit Judges, and MURPHY, * District Judge.

PER CURIAM:

The question on this appeal is whether the District Judge erred in concluding that the cash bonus received by Taxpayer, a small business corporation under Subchapter S of the Internal Revenue Code of 1954 (26 U.S.C. § 1371 et seq.) and the lessor in an oil and gas lease, did not constitute “personal holding company income” under 26 U.S.C. § 1372(e)(5) as it read in 1965, and hence did not operate to terminate Taxpayer’s election to be taxed as a small business corporation.

Having carefully considered the matter, we are convinced that the answer is “no” and approve and adopt the well- considered opinion of Judge Smith appearing in 362 F.Supp. 897 (D.Mont. 1973).

Affirmed.