Smith v. Commissioner
United States Tax Court
1. Petitioners in late 1959 entered into an agreement to purchase a business and sublease the property on which the business was conducted, the agreement specifically providing that petitioners would by June 1, 1962, exercise the option to purchase the property contained in the lease which petitioners acquired, which lease provided for 40 percent of rental payments being credited towards the purchase price of the property.
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1. Petitioners in late 1959 entered into an agreement to purchase a business and sublease the property on which the business was conducted, the agreement specifically providing that petitioners would by June 1, 1962, exercise the option to purchase the property contained in the lease which petitioners acquired, which lease provided for 40 percent of rental payments being credited towards the purchase price of the property. Petitioners leased another property under a 5-year lease with an option to purchase that property, which lease provided that if the option were exercised, 25 percent of the…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioners’ income taxes for the calendar years 1962 and 1963 in the amounts of $4,126.99 and $707.88, respectively.
The issues for decision are:(1) Whether 40 percent of the monthly payments made by petitioners for the period January through May 1962 designated as rental of a property which they purchased as of May 31, 1962, pursuant to an option permitting 40 percent of the stated rental of the property to be applied to the purchase price upon exercise of the option to purchase, is deductible by petitioners during the year 1962 as rent or…
2Cases cited11 opinions
- Walburga Oesterreich v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- 2554-58 Creston Corp. v. CommissionerUnited States Tax Court · 1963
- University Properties, Inc. v. CommissionerUnited States Tax Court · 1966
- Martin v. CommissionerUnited States Tax Court · 1965
- University Properties, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1967
6 more not listed; retrieve them via the Exa API.
3Cited by34 opinions
- Estate of Thomas v. CommissionerUnited States Tax Court · 1985
- Van Raden v. CommissionerUnited States Tax Court · 1979
- Northwest Acceptance Corp. v. CommissionerUnited States Tax Court · 1972
- Martin J. And Margaret M. Zaninovich and Vincent M. And Dorothy F. Zaninovich v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
- Zaninovich v. CommissionerUnited States Tax Court · 1978
29 more not listed; retrieve them via the Exa API.