Del Guercio v. Commissioner
United States Tax Court
P purchased a crane from his brother-in-law for consideration consisting of $ 20,000 cash and $ 80,000 of nonrecourse indebtedness. P's brother-in-law had purchased the crane six months earlier from an unrelated third party for $ 20,000. P's objective in purchasing the crane was to incur tax benefits in large disproportion to his economic investment. The crane was never leased and generated no income.
Read the full summary
P purchased a crane from his brother-in-law for consideration consisting of $ 20,000 cash and $ 80,000 of nonrecourse indebtedness. P's brother-in-law had purchased the crane six months earlier from an unrelated third party for $ 20,000. P's objective in purchasing the crane was to incur tax benefits in large disproportion to his economic investment. The crane was never leased and generated no income. P has made no principal or interest payment on the $ 80,000 of nonrecourse indebtedness. Held, P did not purchase the crane with the objective of engaging in the activity of crane leasing for…
1Opinion of the Court
LOUIS R. M. DEL GUERCIO AND PAULA M. H. DEL GUERCIO, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Del Guercio v. Commissioner
Docket Nos. 41442-85; 13824-86
United States Tax Court
T.C. Memo 1989-354; 1989 Tax Ct. Memo LEXIS 353; 57 T.C.M. (CCH) 1023; T.C.M. (RIA) 89354;
July 24, 1989
P purchased a crane from his brother-in-law for consideration consisting of $ 20,000 cash and $ 80,000 of nonrecourse indebtedness. P's brother-in-law had purchased the crane six months earlier from an unrelated third party for $ 20,000. P's objective in purchasing the crane was to incur tax benefits in…
2Cases cited16 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Dreicer v. CommissionerUnited States Tax Court · 1982
- Golanty v. CommissionerUnited States Tax Court · 1979
- Estate of Charles T. Franklin, Deceased v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1976
- Estate of Franklin v. CommissionerUnited States Tax Court · 1975
11 more not listed; retrieve them via the Exa API.