collapsible corporation

A corporation formed to give a short-term venture the appearance of a long-term in-vestment in order to portray income as capital gain, rather than profit.

• The corporation is typically formed for the sole purpose of purchasing property. The corporation is usu. dissolved before the property has generated sub-stantial income. The Internal Revenue Service treats the income earned through a collapsible corporation as ordinary income rather than as capital gain. IRC (26 USCA) § 341(a). Cf. collapsible partnership under PART-NERSHIP. [Cases: Internal Revenue 3728.]

---

词条贡献者

译者崇载，国际名校知识产权法专业，擅长翻译各种与知识产权相关的法律文件。