Moline Properties, Inc. v. Commissioner

Holding

A corporation remains a separate taxable entity when it was formed for a business purpose or actually carried on business activity.

Facts

The case involved a wholly owned corporation created to hold and dispose of real estate and related obligations. The taxpayer argued that the corporate gains should be treated as the shareholder's gains instead.

Reasoning

The Supreme Court explained that so long as the corporation's purpose is the equivalent of business activity or the corporation actually carries on business, the corporate form is respected for tax purposes.