Baird v. Commissioner
United States Tax Court
On Aug. 29, 1970, petitioner, a cash basis taxpayer, entered into a preliminary agreement to purchase property on which a convalescent home was being constructed and to lease it back to seller.
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On Aug. 29, 1970, petitioner, a cash basis taxpayer, entered into a preliminary agreement to purchase property on which a convalescent home was being constructed and to lease it back to seller. Upon execution of the agreement petitioner advanced sufficient cash to pay to construction lender and permanent financing lender the 12 points required by the permanent lender to compensate for the low interest rate written into the FHA-insured permanent loan, a 1-point "commitment fee" required by the permanent lender, and a 1-point "transfer fee" required by the construction lender to take over the…
1Opinion of the Court
Drennen, Judge:
Respondent determined a deficiency in petitioners’ income tax for the year 1970 in the amount of $26,042. By amended answer respondent increased the determined deficiency by disallowing additional interest and depreciation expenses claimed on petitioners’ return.1
The issues for decision herein are: (1) On what date did petitioner John N. Baird become the owner of a certain building and personal property located therein, for tax purposes;2 and (2) what amount, if any, may petitioners claim as deductible interest expense under section 163,1.R.C. 1954,3 with respect to payments…
2Cases cited33 opinions
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- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- Commissioner v. HansenSupreme Court of the United States · 1959
- Weiss v. WeinerSupreme Court of the United States · 1929
- American Automobile Assn. v. United StatesSupreme Court of the United States · 1961
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3Cited by77 opinions
- Foster v. Comm'rUnited States Tax Court · 1983
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- Peninsula Steel Products & Equipment Co. v. CommissionerUnited States Tax Court · 1982
- Derr v. CommissionerUnited States Tax Court · 1981
- Keith v. CommissionerUnited States Tax Court · 2000
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