Hardy v. Commissioner
United States Tax Court
Taxpayer paid loan fees associated with a purported $ 20 million loan. Taxpayer intended to use the loan proceeds to purchase large hotel properties. Held, the taxpayer's effort to become an owner of hotels constituted the start-up of a new business or a new income-producing activity.
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Taxpayer paid loan fees associated with a purported $ 20 million loan. Taxpayer intended to use the loan proceeds to purchase large hotel properties. Held, the taxpayer's effort to become an owner of hotels constituted the start-up of a new business or a new income-producing activity. Held, further: The loan fees are start-up or pre-opening expenses that are not deductible under either sec. 162 or sec. 212, I.R.C. 1954. Our opinions in Johnsen v. Commissioner, 83 T.C. 103 (1984), revd. 794 F.2d 1157 (6th Cir. 1986), and Hoopengarner v. Commissioner, 80 T.C. 538 (1983), affd. by unpublished…
1Opinion of the Court
Arthur H. Hardy and Jeannine C. Hardy, Petitioners v. Commissioner of Internal Revenue, Respondent
Hardy v. Commissioner
Docket No. 7856-86
United States Tax Court
93 T.C. 684; 1989 U.S. Tax Ct. LEXIS 152; 93 T.C. No. 56;
December 13, 1989December 13, 1989, Filed
Decision will be entered under Rule 155.
Taxpayer paid loan fees associated with a purported $ 20 million loan. Taxpayer intended to use the loan proceeds to purchase large hotel properties. Held, the taxpayer's effort to become an owner of hotels constituted the start-up of a new business or a new income-producing activity. Held, further:…
2Cases cited22 opinions
- Burnet v. Coronado Oil & Gas Co.Supreme Court of the United States · 1932
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Commissioner v. Idaho Power Co.Supreme Court of the United States · 1974
- Richmond Television Corporation v. United StatesCourt of Appeals for the Fourth Circuit · 1965
- Goodwin v. CommissionerUnited States Tax Court · 1980
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