Swift Dodge v. Commissioner
United States Tax Court
During the years in issue, petitioner, an automobile dealership, borrowed funds from banks to be used for the acquisition of certain motor vehicles. At the same time, petitioner and third parties executed documents entitled "Lease Agreements," pursuant to which each third party was granted the use of a vehicle for a definite term, generally 36 months. Held: The "Lease Agreements" are not conditional sales contracts.
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During the years in issue, petitioner, an automobile dealership, borrowed funds from banks to be used for the acquisition of certain motor vehicles. At the same time, petitioner and third parties executed documents entitled "Lease Agreements," pursuant to which each third party was granted the use of a vehicle for a definite term, generally 36 months. Held: The "Lease Agreements" are not conditional sales contracts. Rather, these documents, and the transactions represented thereby, in form and substance are leases.
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioner’s income taxes for taxable years 1974 and 1975 in the amounts of $25,922.84 and $22,168.37, respectively.
The issue for decision is whether in calendar years 1974 and 1975 petitioner is entitled to a section 38, I.R.C. 1954,1 investment credit with respect to vehicles acquired by petitioner for use by other persons pursuant to the terms of an agreement entitled “Lease Agreement.”
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
Swift Dodge (petitioner), a California corporation, had its principal place…
2Cases cited13 opinions
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
- Bowen v. CommissionerUnited States Tax Court · 1949
- Breece Veneer and Panel Company v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1956
- Northwest Acceptance Corp. v. CommissionerUnited States Tax Court · 1972
- Northwest Acceptance Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1974
8 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Estate of Thomas v. CommissionerUnited States Tax Court · 1985
- Ridder v. CommissionerUnited States Tax Court · 1981
- Swift Dodge v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1982
- Burns v. CommissionerUnited States Tax Court · 1982
- Leslie Leasing Co. v. CommissionerUnited States Tax Court · 1983
15 more not listed; retrieve them via the Exa API.