Zidanic v. Commissioner
United States Tax Court
Petitioner, a cash basis taxpayer, purchased a building in October of 1977 for $ 1,150,000. He made no downpayment on the building but as part of the agreement prepaid a full year's interest. Such prepayment was nonrefundable in the event of early payment of the principal. Held, an interest payment by a cash basis taxpayer must, under sec. 461(g), I.R.C. 1954, be ratably allocated without regard to whether the payment in question is nonrefundable.
1Opinion of the Court
Sterrett, Judge:
By notice of deficiency dated April 14, 1980, respondent determined a deficiency of $47,560 in petitioner’s Federal income tax for the taxable year 1977. The sole issue for decision is whether petitioner is entitled to an interest deduction of $92,375 in 1977, or whether such amount must be prorated under section 461(g), I.R.C. 1954.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts and exhibits attached thereto are incorporated herein by this reference.
Petitioner resided in Independence, Ohio, at the time of filing the petition…
2Cases cited5 opinions
- Baird v. CommissionerUnited States Tax Court · 1977
- B. F. Goodrich Co. v. CommissionerUnited States Tax Court · 1943
- Miller & Vidor Lumber Co. v. Com'r of Internal RevenueCourt of Appeals for the Fifth Circuit · 1930
- Schubel v. CommissionerUnited States Tax Court · 1981
- Jemison v. CommissionerUnited States Board of Tax Appeals · 1929
3Cited by8 opinions
- Huntsman v. CommissionerUnited States Tax Court · 1988
- Beek v. CommissionerUnited States Tax Court · 1983
- Aguirre v. CommissionerUnited States Tax Court · 1984
- Beek v. CommissionerUnited States Tax Court · 1983
- Fox v. CommissionerUnited States Tax Court · 1989
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