Helser Mach. & Marine Works, Inc. v. Commissioner
United States Board of Tax Appeals
Amounts paid as rental by a lessee during the taxable year pursuant to an agreement requiring the conveyance to lessee of the property whenever it had paid the total sum due for the 10-year term, held, not deductible as "rental" under Revenue Act of 1934, section 23(a).
1Opinion of the Court
OPINION.
Sterniiagen :
The Commissioner determined a deficiency of $176 in petitioner’s income tax for 1935, solely by reason of the disallowance of a deduction of $1,280 taken as rent for property of which the petitioner was to have the right to acquire title. The facts are not in dispute and are entirely stipulated.
Under an agreement called a lease, dated April 1, 1935, the petitioner became the lessee from May 1, 1935, until April 30, 1945, of a piece of property in Portland, Oregon, and agreed to pay rent in monthly payments of $160 each. The last paragraphs of the lease are as follows:
And…
2Cases cited2 opinions
- Grapico Bottling Works v. Liquid Carbonic Co.Supreme Court of Louisiana · 1927
- Herring-Marvin Co. v. SmithOregon Supreme Court · 1903
3Cited by10 opinions
- Walburga Oesterreich v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- Breece Veneer and Panel Company v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1956
- Western Contracting Corp. v. CommissionerUnited States Tax Court · 1958
- Berry v. CommissionerUnited States Tax Court · 1952
- Calcasieu Paper Co. v. CommissionerUnited States Tax Court · 1953
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