Rubnitz v. Commissioner
United States Tax Court
Held, a 3 1/2-percent "loan fee" withheld by the lender from the principal amount of a 25-year "construction loan" may not be deducted by the borrower in 1970 when escrow closed (on Dec. 17, 1970) on such loan.
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Held, a 3 1/2-percent "loan fee" withheld by the lender from the principal amount of a 25-year "construction loan" may not be deducted by the borrower in 1970 when escrow closed (on Dec. 17, 1970) on such loan. Held, further, a 1-percent "commitment" or "standby" fee reflected in a check (dated Dec. 15, 1970) given by the borrower to the lender which was to be credited by the lender against the 3 1/2-percent loan fee, but which was in fact placed in a "suspense" account by the lender and returned to the borrower in early 1971, is similarly not deductible in 1970.
1Opinion of the Court
Alan A. Rubnitz, Riva M. Rubnitz; Robert R. Krandel, Ruth E. Krandel; Lelon C. Wichert, Kathy E. Wichert; Roy S. Aal, Syrill Aal; Frank E. Ritchey, Jr., Betty R. Ritchey; Marco Goodman, Ruth M. Goodman; Sylvan Gross, Jacqueline Gross; Willard B. Ross, Maria Elena Ross; and Ashland Investment Co., Inc., Petitioners v. Commissioner of Internal Revenue, Respondent
Rubnitz v. Commissioner
Docket No. 4313-74
United States Tax Court
67 T.C. 621; 1977 U.S. Tax Ct. LEXIS 172;
January 6, 1977, Filed
Decision will be entered for the respondent.
Held, a 3 1/2-percent "loan fee" withheld by the lender from the…
2Cases cited33 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Eckert v. BurnetSupreme Court of the United States · 1931
- Eli D. Goodstein v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Eli D. GoodsteinCourt of Appeals for the First Circuit · 1959
- Helvering v. PriceSupreme Court of the United States · 1940
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