Haggard v. Commissioner
United States Tax Court
Petitioners entered into agreements in the form of a lease and option to purchase with respect to a parcel of land to be used in conducting their farming and ranching business.
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Petitioners entered into agreements in the form of a lease and option to purchase with respect to a parcel of land to be used in conducting their farming and ranching business. Under the agreements, petitioners were to pay $ 10,000 for the year 1948 and $ 12,000 for the year 1949 as "rent," and $ 2,000 for the option to purchase the property thereafter for $ 24,000. Respondent disallowed the deduction of the so-called rental payment for the year 1949 on the ground that it did not qualify as rental expense within the meaning of section 23 (a) (1) (A) of the Internal Revenue Code of 1939. Held,…
1Opinion of the Court
OPINION.
FisheR, Judge:
The respondent has disallowed a deduction of a payment made by petitioners under a “Lease,” executed in conjunction with an “Option” to purchase, on the ground that the payment was not rental expense within the meaning of section 23 (a) (1) (A) of the Internal Revenue Code of 1939, which restricts deductions to rentals or other payments for the use or possession of property “to which the taxpayer has not taken or is not taking title or in which he has no equity.” The sole issue to be decided is whether the so-called “rental” payment was in fact a payment of rent under…
2Cases cited3 opinions
- Mills v. CommissionerUnited States Tax Court · 1948
- Benton v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1952
- Bowen v. CommissionerUnited States Tax Court · 1949
3Cited by81 opinions
- Grodt & McKay Realty, Inc. v. CommissionerUnited States Tax Court · 1981
- Falsetti v. CommissionerUnited States Tax Court · 1985
- Zirker v. CommissionerUnited States Tax Court · 1986
- Estate of Thomas v. CommissionerUnited States Tax Court · 1985
- Levy v. CommissionerUnited States Tax Court · 1988
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