Estate of Franklin v. Commissioner
United States Tax Court
The owner of certain motel property entered into several agreements purporting to sell such property to a limited partnership, of which the deceased taxpayer was a member, and to lease the property back from the partnership. Thereafter, the taxpayers claimed as loss deductions their distributive share of the excess of the interest on the purchase price stated in the sales agreement plus depreciation deductions on the property over the rent specified in the lease.
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The owner of certain motel property entered into several agreements purporting to sell such property to a limited partnership, of which the deceased taxpayer was a member, and to lease the property back from the partnership. Thereafter, the taxpayers claimed as loss deductions their distributive share of the excess of the interest on the purchase price stated in the sales agreement plus depreciation deductions on the property over the rent specified in the lease. Held, the partnership obligations defined in the aforesaid agreements are not sufficiently definite and unconditional to constitute…
1Opinion of the Court
Featherston, Judge:
Respondent determined the following deficiencies in Federal income tax due from the Estate of Charles T. Franklin, deceased, and Mrs. Margaret A. Franklin, petitioners:
Year Deficiency
1968_ $13,376.99
1969_ 14,719.31
Certain concessions having been made, only one issue remains for our resolution: Are petitioners entitled to deductions for their distributive share of the losses reported by a limited partnership which entered into a contract with respect to the acquisition of a motel and related property? The answer depends on whether the obligations undertaken by the…
2Cases cited29 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Crane v. CommissionerSupreme Court of the United States · 1947
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- Commissioner v. BrownSupreme Court of the United States · 1965
- Mayerson v. CommissionerUnited States Tax Court · 1966
24 more not listed; retrieve them via the Exa API.
3Cited by231 opinions
- Brannen v. CommissionerUnited States Tax Court · 1982
- Estate of Charles T. Franklin, Deceased v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1976
- Grodt & McKay Realty, Inc. v. CommissionerUnited States Tax Court · 1981
- Siegel v. CommissionerUnited States Tax Court · 1982
- Flowers v. CommissionerUnited States Tax Court · 1983
226 more not listed; retrieve them via the Exa API.