Bradford Hotel Operating Co. v. Commissioner
United States Tax Court
Petitioner leased real property for a 35-year term commencing January 1, 1947, expiring January 1, 1982. A deposit of $ 250,000 was made by the lessee with the petitioner, as security for the performance of its obligations under the lease, and the petitioner was given the right to commingle and use the deposit for its own purposes without interest. The deposit was to be returned upon the expiration of the lease.
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Petitioner leased real property for a 35-year term commencing January 1, 1947, expiring January 1, 1982. A deposit of $ 250,000 was made by the lessee with the petitioner, as security for the performance of its obligations under the lease, and the petitioner was given the right to commingle and use the deposit for its own purposes without interest. The deposit was to be returned upon the expiration of the lease. On September 14, 1949, the parties entered into an agreement for the termination of the lease on January 3, 1950, the agreement providing for the return on that date of $ 65,000 of…
1Opinion of the Court
Mulroney, Judge:
The respondent determined deficiencies in petitioner’s income tax for the fiscal years ended August 31, 1948, 1949, and 1950, in the amounts of $20,132.95, $10,269.24, and $17,004.65, respectively. All issues with respect to 1948 and 1949, and certain issues with respect to 1950, have been settled. The only issue for decision is the amount of income petitioner-lessor realized in January 1950 when a lease was canceled by mutual agreement of petitioner and lessee, and petitioner was released from an obligation to repay to the lessee $185,000 of a $250,000 deposit lessee had made…
2Cases cited14 opinions
- Prime's PetitionSupreme Court of Pennsylvania · 1939
- Sutton v. GoodmanMassachusetts Supreme Judicial Court · 1907
- Warren Service Corp. v. Commissioner of Internal Rev.Court of Appeals for the Second Circuit · 1940
- Richman v. Joray Corp.Court of Appeals for the Fourth Circuit · 1950
- Thibault v. FrechetteSupreme Court of Connecticut · 1948
9 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Fiore v. CommissionerUnited States Tax Court · 1979
- Bradford Hotel Operating Co. v. CommissionerUnited States Tax Court · 1956