Consolidated Apparel Co. v. Commissioner
United States Tax Court
1. Rentals paid to a family trust which was created for the purpose of acquiring the overriding leasehold estate from petitioner's lessor, disallowed, to the extent that they exceeded the rental which petitioner was obligated to pay in the taxable years under the old lease. 2. Reasonable compensation for services performed by petitioner's president and vice president determined on the evidence. 3. Where amortization deductions on leasehold improvements during the base period…
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1. Rentals paid to a family trust which was created for the purpose of acquiring the overriding leasehold estate from petitioner's lessor, disallowed, to the extent that they exceeded the rental which petitioner was obligated to pay in the taxable years under the old lease. 2. Reasonable compensation for services performed by petitioner's president and vice president determined on the evidence. 3. Where amortization deductions on leasehold improvements during the base period years were excessive, due to the fact that the cost of such improvements was spread over the remaining short term of…
1Opinion of the Court
OPINION.
1. Rental Deductions.
LeMike, Judge:
Respondent’s present position is that petitioner’s deduction for rental of the Berlin Arcade Building space occupied under its lease from the Trust during 1945 and 1946 is limited under section 23 (a) (1) (A) to $22,500, the amount which it was obligated' to pay in those years under its lease agreement with Consolidated Mercantile Company. That company served no purpose but to hold the lease from Third-North Realty Company on the premises occupied in the Berlin Arcade Building for petitioner’s benefit. It had no other assets. In view of these facts…
2Cases cited13 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. TowerSupreme Court of the United States · 1946
- Place v. CommissionerUnited States Tax Court · 1951
- Limericks, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1948
- Limericks, Inc. v. CommissionerUnited States Tax Court · 1946
8 more not listed; retrieve them via the Exa API.
3Cited by43 opinions
- E. H. Sheldon & Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1954
- Consolidated Apparel Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1953
- Irby Construction Company v. United StatesUnited States Court of Claims · 1961
- Martin Fireproofing Profit-Sharing Plan & Trust v. CommissionerUnited States Tax Court · 1989
- R. T. French Co. v. CommissionerUnited States Tax Court · 1973
38 more not listed; retrieve them via the Exa API.