Sirbo Holdings, Inc. v. Commissioner
United States Tax Court
A lessee of property paid the lessor $ 125,000 for the modification of a lease upon the execution of which the lessee would continue to occupy the premises. Said modification called for the elimination of the obligation of the lessee to restore the premises to a prior condition. Held, the petitioner is not entitled to capital gain treatment for the payment by the lessee.
1Opinion of the Court
Qttealy, Judge:
The respondent determined a deficiency in the Federal income tax of the petitioner in the amount of $53,573.30 for the taxable year ended June 30,1964.
The issue presented for decision is whether the petitioner is entitled to capital gain treatment for a payment of $125,000 from its tenant or whether this amount is taxable to the petitioner as ordinary income.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and exhibits attached thereto are herein incorporated by this reference.
The petitioner, Sirbo Holdings, Inc. (hereinafter referred to as the…
2Cases cited1 opinion
- Billy Rose's Diamond Horseshoe, Inc. (In Dissolution) v. United StatesCourt of Appeals for the Second Circuit · 1971
3Cited by17 opinions
- Davis v. CommissionerUnited States Tax Court · 1976
- Jaggard v. CommissionerUnited States Tax Court · 1981
- Sirbo Holdings, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1973
- Estate of Henry v. CommissionerUnited States Tax Court · 1978
- Sirbo Holdings, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1975
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