Riot Act. A 1714 English statute that made it a capital offense for 12 or more rioters to continue together for an hour after a magistrate has officially proclaimed that rioters must disperse. • This statute was not generally accepted in the United States and did not become a part of American common law. It […]
lease-purchase agreement. A rent-to-own purchase plan under which the buyer takes possession of the goods with the first payment and takes ownership with the final payment; a lease of property (esp. equipment) by which ownership of the property is transferred to the lessee at the end of the lease term. • Such a lease is
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Corn Products doctrine. Tax. The principle that a capital asset should be narrowly defined to exclude invento-ry-related property that is integrally tied to the day-to-day operations of a business. Corn Prods. Refining Co. v. C.I.R., 350 U.S. 46, 76 S.Ct. 20 (1955). [Cases: Internal Revenue 3178, 3230. 1. C.J.S. Internal Revenue § 110.]
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A now-rare stock-option plan that allows a person to buy stock for a period (often five years) at the market price, the stock being subject to capital-gains tax treatment. [Cases: Internal Revenue 3602. C.J.S. Internal Revenue § 315.]
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A corporation’s gross income less capital gains and certain expenses. • The IRS uses this calculation to determine whether a corporation is a personal holding company. If 60% or more of a corporation’s AOGI consists of certain passive investment income, the company has met the test for personal-holding-company classification. IRC (26 USCA) § 543(b). —
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