Harrigan Lumber Co. v. Commissioner
United States Tax Court
P leased exclusive hunting rights to about 6,000 acres for 10 years and entertained suppliers and customers by providing hunting and fishing opportunities on the leased land.
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P leased exclusive hunting rights to about 6,000 acres for 10 years and entertained suppliers and customers by providing hunting and fishing opportunities on the leased land. The lease payments are business expenses within the meaning of sec. 162, I.R.C. 1954. Held, because P had exclusive use and unfettered access to the acreage for entertainment, the hunting area is a "facility" within the meaning of sec. 274(a)(1)(B). Held, further, because the lease payments are an expense for the continuing enjoyment of the property, they relate more to the facility than to the recreational activity and…
1Opinion of the Court
OPINION
WILLIAMS, Judge:*
The Commissioner determined deficiencies in petitioner’s Federal income tax for the taxable year ended September 30, 1978, in the amount of $9,311 and for the taxable year ended September 27, 1980, in the amount of $8,572.1 After concessions by the parties, the sole issue this Court must decide is whether petitioner’s deduction of payments for the hunting rights to a tract of land should be disallowed pursuant to section 274.2
The facts of this case have been fully stipulated and are so found. Petitioner is an Alabama corporation whose principal place of business was at…
2Cases cited1 opinion
- Berkley MacHine Works & Foundry Company v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1980
3Cited by13 opinions
- Ireland v. CommissionerUnited States Tax Court · 1987
- Patrick E. Catalano v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 2001
- Sutherland Lumber-Southwest, Inc. v. CommissionerUnited States Tax Court · 2000
- Dodd v. CommissionerUnited States Tax Court · 1992
- Fingar v. CommissionerUnited States Tax Court · 1997
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