Legal Opinion

Ray v. Commissioner

United States Tax Court

Decided May 29, 1952No. Docket Nos. 30909, 30910PublishedCited by 44 opinions

Capital Gain -- Sale of Leasehold Benefit -- Income to Lessee. -- A relinquishment by lessee for a valuable consideration of a benefit granted him in a lease relating to the use and enjoyment of the leased premises is a sale of property and gain therefrom is "capital gain" and taxable as such.

1Opinion of the Court

OPINION.

Johnson, Judge:

The Commissioner determined deficiencies in income tax for the year 1946 against each of the petitioners in the amount of $1,910.77.

The sole question for decision is whether $20,000 received by petitioners from their lessor in a lease was taxable as ordinary income, as the Commissioner determined, or as gain from the sale of a capital asset, as petitioners contend.

All of the facts were stipulated and are so found, a summary of which follows.

Petitioners are husband and wife, residents of Dallas, Texas, and filed income tax returns for 1946 on the community property basis…

2Cases cited15 opinions

  1. Hort v. CommissionerSupreme Court of the United States · 1941
  2. Curlee v. WalkerTexas Supreme Court · 1922
  3. Helvering v. William Flaccus Oak Leather Co.Supreme Court of the United States · 1941
  4. Hale v. HelveringCourt of Appeals for the D.C. Circuit · 1936
  5. Jones, Collector of Internal Revenue v. CorbynCourt of Appeals for the Tenth Circuit · 1950

10 more not listed; retrieve them via the Exa API.

3Cited by44 opinions

  1. Commissioner of Internal Revenue v. RayCourt of Appeals for the Fifth Circuit · 1954
  2. McCue Bros. & Drummond, Inc. v. CommissionerUnited States Tax Court · 1953
  3. Leh v. CommissionerUnited States Tax Court · 1957
  4. Kingsbury v. CommissionerUnited States Tax Court · 1976
  5. Hollywood Baseball Ass'n v. CommissionerUnited States Tax Court · 1964

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