Gray v. Commissioner
United States Tax Court
Petitioner entered into leases and management contracts for certain lands pursuant to which petitioner was required to pay in advance a fixed rental and management fee for the first year. Petitioner had the option to terminate the arrangement and obtain a refund of the amounts prepaid after the third year. By agreement of the parties, this right was accelerated and the contracts were terminated.
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Petitioner entered into leases and management contracts for certain lands pursuant to which petitioner was required to pay in advance a fixed rental and management fee for the first year. Petitioner had the option to terminate the arrangement and obtain a refund of the amounts prepaid after the third year. By agreement of the parties, this right was accelerated and the contracts were terminated. Held: Repayment to the petitioner of the advance rents and management fees did not constitute amounts received in exchange for such leases within the meaning of sec. 1241. Since the prepaid rents and…
1Opinion of the Court
Quealy, Judge:
Respondent determined a deficiency of $13,733 in petitioners’ Federal income taxes for the 1973 calendar taxable year. Because of the concessions made by the parties, the only issue remaining for decision is whether payments received by petitioners upon the termination of certain lease and management contracts shall be considered as amounts received in an exchange for such leases within the meaning of section 1241.1
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and the exhibits attached thereto are incorporated herein by this reference.
Arthur J.…
2Cases cited10 opinions
- Canelo v. CommissionerUnited States Tax Court · 1969
- Louis Spitalny and Betty Spitalny, His Wife v. United States of America, William Erdwurm and Bart F. Erdwurm, His Wife v. United StatesCourt of Appeals for the Ninth Circuit · 1970
- Commissioner of Internal Revenue v. D. B. AndersCourt of Appeals for the Tenth Circuit · 1969
- National Bank of Commerce v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1940
- Kingsbury v. CommissionerUnited States Tax Court · 1976
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3Cited by4 opinions
- Burns v. CommissionerUnited States Tax Court · 1982
- Arthur J. Gray and Esther Gray v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1981
- Burns v. CommissionerUnited States Tax Court · 1982
- Gray v. CommissionerUnited States Tax Court · 1978