Miller v. Commissioner
United States Tax Court
Petitioners, as general partners, obtained recourse financing from an unrelated creditor and purchased a crane. The partnership entered into a short-term lease of the crane to petitioners' closely held corporation at a fair rental value. The partnership incurred ordinary and necessary expenses for maintenance and repair of the crane during the first 12 months of the lease term that exceeded 15 percent of the lease payments received from the lessee.
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Petitioners, as general partners, obtained recourse financing from an unrelated creditor and purchased a crane. The partnership entered into a short-term lease of the crane to petitioners' closely held corporation at a fair rental value. The partnership incurred ordinary and necessary expenses for maintenance and repair of the crane during the first 12 months of the lease term that exceeded 15 percent of the lease payments received from the lessee. Held, petitioners are entitled to investment tax credits with respect to the crane pursuant to sec. 46(e)(3)(B), I.R.C. 1954.
1Opinion of the Court
Robert J. Miller and Susan F. Miller, Samuel Edelman and Sylvia Edelman, Phillip Paley and Dorene Paley, and Harold W. Paley, Petitioners v. Commissioner of Internal Revenue, Respondent
Miller v. Commissioner
Docket No. 26986-83
United States Tax Court
85 T.C. 1064; 1985 U.S. Tax Ct. LEXIS 3; 85 T.C. No. 62;
December 30, 1985, Filed
Decision will be entered under Rule 155.
Petitioners, as general partners, obtained recourse financing from an unrelated creditor and purchased a crane. The partnership entered into a short-term lease of the crane to petitioners' closely held corporation at a fair rental…
2Cases cited17 opinions
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
- Curphey v. CommissionerUnited States Tax Court · 1980
- Hazard v. CommissionerUnited States Tax Court · 1946
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