Alstores Realty Corp. v. Commissioner
United States Tax Court
Petitioner acquired a warehouse building offered for sale for $ 1 million, paying $ 750,000 cash and simultaneously granting the party from which it purchased the property a right to 2 1/2 years' rent-free occupancy of specified portions under a leaseback agreement. Held: Petitioner realized taxable rent income in the amount of the fair market value of the leaseback.
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Petitioner acquired a warehouse building offered for sale for $ 1 million, paying $ 750,000 cash and simultaneously granting the party from which it purchased the property a right to 2 1/2 years' rent-free occupancy of specified portions under a leaseback agreement. Held: Petitioner realized taxable rent income in the amount of the fair market value of the leaseback. The transaction was a purchase of the entire fee interest and a leaseback of a portion thereof, and not a purchase of a remainder interest with the seller reserving an estate for years. Held, further, petitioner's depreciable…
1Opinion of the Court
Alstores Realty Corporation, Petitioner, v. Commissioner of Internal Revenue, Respondent
Alstores Realty Corp. v. Commissioner
Docket No. 4928-62
United States Tax Court
46 T.C. 363; 1966 U.S. Tax Ct. LEXIS 88;
June 15, 1966, Filed
Decision will be entered under Rule 50.
Petitioner acquired a warehouse building offered for sale for $ 1 million, paying $ 750,000 cash and simultaneously granting the party from which it purchased the property a right to 2 1/2 years' rent-free occupancy of specified portions under a leaseback agreement. Held: Petitioner realized taxable rent income in the amount of the…
2Cases cited6 opinions
- Thomas v. PerkinsSupreme Court of the United States · 1937
- Larkin v. United StatesCourt of Appeals for the Eighth Circuit · 1935
- Alstores Realty Corp. v. CommissionerUnited States Tax Court · 1966
- Pembroke v. CommissionerUnited States Board of Tax Appeals · 1931
- Pembroke v. HelveringCourt of Appeals for the D.C. Circuit · 1934
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