BRAUNSTEIN v. C. I. R.

Nos. 256-258, Docket 27146-27148.

305 F.2d 949 (1962)

Benjamin BRAUNSTEIN and Diana Braunstein; Estate of Benjamin Neisloss, Deceased, Julia Neisloss and Russell Neisloss, Executors and Julia Neisloss; Harry Neisloss and Lillian Neisloss, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.

United States Court of Appeals Second Circuit.

Decided July 6, 1962.


Attorney(s) appearing for the Case

Thurman Arnold and Louis Eisenstein, Washington, D. C. (Julius M. Greisman and Arnold, Fortas & Porter, Washington, D. C., on the brief), for petitioners.

David O. Walter, Dept. of Justice, Washington, D. C. (Louis F. Oberdorfer, Asst. Atty. Gen., Lee A. Jackson and Harry Baum, Dept. of Justice, on the brief), for respondent.

Before LUMBARD, Chief Judge, and SMITH and MARSHALL, Circuit Judges.


LUMBARD, Chief Judge.

The taxpayers,1 who had previously been active in constructing homes and apartment buildings, formed two corporations in 1948 for the purpose of building apartment houses in a development called Oakland Gardens in Bayside, Queens County, New York, to be financed under § 608 of the National Housing Act.2 The Federal Housing Administration (FHA) guaranteed mortgage loans to the two...

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