Torres v. Commissioner
United States Tax Court
On Nov. 13, 1974, Regency Associates (Regency) entered into a sale leaseback transaction involving certain computer equipment. Under the terms of the lease, Regency would receive rent which included both fixed and contingent elements. Projections of contingent rents to be received by Regency showed that Regency would recoup its investment and make a substantial profit from the transaction.
Read the full summary
On Nov. 13, 1974, Regency Associates (Regency) entered into a sale leaseback transaction involving certain computer equipment. Under the terms of the lease, Regency would receive rent which included both fixed and contingent elements. Projections of contingent rents to be received by Regency showed that Regency would recoup its investment and make a substantial profit from the transaction. Further, Regency was to receive the equipment free and clear at the end of the lease term. Held, the transaction here in issue is not so lacking in economic substance that it can be disregarded for Federal…
1Opinion of the Court
CLAPP, Judge:
These consolidated cases initially involved issues relating to three limited partnerships: Regency Associates, Bari Associates, and Pallas Associates. The issues relating to Pallas Associates were conceded by petitioners and the parties have agreed to be bound by our decision in Coleman v. Commissioner, docket No. 12336-80, with respect to the issues relating to Bari Associates. Petitioner Edward Torres is the only petitioner with an interest in Regency Associates and is, therefore, the only petitioner to which the issues discussed herein relate. For purposes of conveinence, we…
2Cases cited24 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Commissioner v. TowerSupreme Court of the United States · 1946
- Dreicer v. CommissionerUnited States Tax Court · 1982
- Commissioner v. BrownSupreme Court of the United States · 1965
19 more not listed; retrieve them via the Exa API.
3Cited by62 opinions
- Levy v. CommissionerUnited States Tax Court · 1988
- Larsen v. CommissionerUnited States Tax Court · 1987
- Delbert W. Coleman and Karen A. Graham v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1994
- Friendship Dairies, Inc. v. CommissionerUnited States Tax Court · 1988
- AWG Leasing Trust v. United StatesDistrict Court, N.D. Ohio · 2008
57 more not listed; retrieve them via the Exa API.