Odend'hal v. Commissioner
United States Tax Court
Petitioners are 7 of 10 co-tenants of commercial real estate. The purchase price for the co-tenants' interests was $ 4 million, which included a $ 3,920,000 nonrecourse loan from the seller. Held: The fair market value of the co-tenants' interests did not exceed $ 2 million upon acquisition. The $ 4 million purchase price and the $ 3,920,000 nonrecourse amount unreasonably exceeded the value of the co-tenants' interests.
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Petitioners are 7 of 10 co-tenants of commercial real estate. The purchase price for the co-tenants' interests was $ 4 million, which included a $ 3,920,000 nonrecourse loan from the seller. Held: The fair market value of the co-tenants' interests did not exceed $ 2 million upon acquisition. The $ 4 million purchase price and the $ 3,920,000 nonrecourse amount unreasonably exceeded the value of the co-tenants' interests. Accordingly, petitioners may not include the nonrecourse amount in depreciable basis, nor may they deduct interest paid on the nonrecourse amount because the nonrecourse…
1Opinion of the Court
OPINION
Nims, Judge:
Respondent determined the following deficiencies in petitioners’ Federal income taxes and additions to tax in these consolidated cases:
Docket No. Petitioners) Sec. 6651(a)2 Year Deficiency addition to tax
8553-78 Fortune Odend’hal, Jr., Gloria P. Odend’hal 1973 $42,709.00 0
8554-78 Fortune Odend’hal, Jr. 1974 45,086.00 0
3066-79 William J. Cassidy 1973 32,918.00 1974 32,950.00 $6,221.00 and Clotilda G. Cassidy 0
1975 9,540.00 0
1975 37,374.00 5780-79 Fortune Odend’hal, Jr. 5,606.00
1975 17,722.00 1976 22,307.00 2275-80 Dean L. Mann and Beverly D. Mann 0 0
1975 10,652.00 1976…
2Cases cited17 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Crane v. CommissionerSupreme Court of the United States · 1947
- Commissioner v. BrownSupreme Court of the United States · 1965
- Brannen v. CommissionerUnited States Tax Court · 1982
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3Cited by89 opinions
- Flowers v. CommissionerUnited States Tax Court · 1983
- Fox v. CommissionerUnited States Tax Court · 1983
- Falsetti v. CommissionerUnited States Tax Court · 1985
- Waddell v. CommissionerUnited States Tax Court · 1986
- Crocker v. CommissionerUnited States Tax Court · 1989
84 more not listed; retrieve them via the Exa API.