Soriano v. Commissioner
United States Tax Court
Ps, through C partnership, leased energy management devices from OEC, under a plan whereby C would install the devices and share energy savings with the end-user. C claimed a deduction for advance rental payments, and OEC attempted to pass through to C, under sec. 48(d), I.R.C. 1954, investment tax credits and business energy credits. Held, value of the energy management devices determined.
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Ps, through C partnership, leased energy management devices from OEC, under a plan whereby C would install the devices and share energy savings with the end-user. C claimed a deduction for advance rental payments, and OEC attempted to pass through to C, under sec. 48(d), I.R.C. 1954, investment tax credits and business energy credits. Held, value of the energy management devices determined. Held, further, Ps are not entitled to the credits or deductions associated with the leases because the partnership did not have a profit objective. Held, further, with respect to the disallowed credits, Ps…
1Opinion of the Court
GERBER, Judge:
Respondent, in a notice of deficiency dated April 9, 1985, determined deficiencies in petitioners’ Federal income taxes and additions to tax as follows:
Year Deficiency Sec. 6659 addition 1
1978 $4,165 $1,249
1979 3,882 1,165
1980 6,177 1,853
1981 8,548 2,564
1982 12,236 3,671
The issues in this case result from petitioners’ involvement in the leasing of electronic energy management devices from O.E.C. Leasing Corp.2 After concessions, the issues for our consideration are whether petitioners are: (1) Entitled to deduct rental and installation expenses incurred by the Carolina…
2Cases cited35 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- Dreicer v. CommissionerUnited States Tax Court · 1982
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3Cited by69 opinions
- David E. Heasley and Kathleen Heasley v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1990
- McCrary v. CommissionerUnited States Tax Court · 1989
- Allen v. CommissionerUnited States Tax Court · 1989
- David E. Heasley and Kathleen Heasley, Cross-Appellees v. Commissioner of Internal Revenue, Cross-AppellantCourt of Appeals for the Fifth Circuit · 1992
- Smith v. CommissionerUnited States Tax Court · 1988
64 more not listed; retrieve them via the Exa API.