Central De Gas De Chihuahua, S.A. v. Commissioner
United States Tax Court
P rented equipment to X which did not pay rent. P and X were under common control of Y, and respondent, acting under the authority of sec. 482, I.R.C., allocated to P the fair rental value of the equipment. Held, since sec. 881, I.R.C., does not require an actual payment, such fair rental value is income under that section.
1Opinion of the Court
OPINION
Tannenwald, Judge:
After making a jeopardy assessment, respondent determined a deficiency of $696,240 in petitioner’s Federal income tax for its 1990 taxable year under section 881.1 The case comes before us on cross-motions for summary judgment on the issue of whether the 30-percent tax imposed by section 881 applies in the absence of an actual payment of the income item, in this case rent.
As will subsequently appear, issues remain to be decided after we have disposed of the contentions of the parties herein, see infra pp. 516-517, so that the cross-motions are more properly…
2Cases cited12 opinions
- Charles A. Sammons, Individually, and Estate of Rosine S. Sammons, Deceased, Charles A. Sammons, Independent v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1973
- Latham Park Manor, Inc. v. CommissionerUnited States Tax Court · 1977
- Casanova Co. v. CommissionerUnited States Tax Court · 1986
- R. T. French Co. v. CommissionerUnited States Tax Court · 1973
- Blanton v. CommissionerUnited States Tax Court · 1990
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3Cited by5 opinions
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