Hill v. Commissioner
United States Tax Court
Petitioners were members of a group of investors who contracted to purchase, as tenants in common, the leases and buildings (improvements) of a certain shopping center. Held, that the transactions constituted a sale for tax purposes, and that petitioners, as owners of the improvements, are entitled to deduct a pro rata share of operating losses and interest on their Federal income tax returns.
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Petitioners were members of a group of investors who contracted to purchase, as tenants in common, the leases and buildings (improvements) of a certain shopping center. Held, that the transactions constituted a sale for tax purposes, and that petitioners, as owners of the improvements, are entitled to deduct a pro rata share of operating losses and interest on their Federal income tax returns. Held, further: That the basis utilized for depreciation of the improvements improperly included an amount of what was essentially interest. A proper basis is determined. Held, further, that petitioners…
1Opinion of the Court
Forrester, Judge:
In these consolidated cases, respondent has determined the following deficiencies in, and additions to, petitioners’ Federal income taxes:
Petitioners Taxable year Deficiency Sec. 6653(a)1 penalty
Athenaise M. and John L. Hill_ 1965 $5,015.23 $250.76
1966 3,906.72 195.34
1967 4,874.00 244.00
1969 163.00
Hallie and Jack Tenner 6,774.08 250.76 to to 05
1,943.20 195.34 to to 05
It was also determined that there had been an overassessment of $53 on Hill’s 1968 return. Respondent has conceded certain issues, and the following remain for our decision:(1) Whether petitioners, between 1965…
2Cases cited12 opinions
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Commissioner v. BrownSupreme Court of the United States · 1965
- Joseph H. Bridges and Lillier J. Bridges v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1963
- Woodbury v. CommissionerUnited States Tax Court · 1967
- Bridges v. CommissionerUnited States Tax Court · 1963
7 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Patin v. CommissionerUnited States Tax Court · 1987
- Karme v. CommissionerUnited States Tax Court · 1980
- Hilton v. CommissionerUnited States Tax Court · 1980
- James O. Druker and Joan S. Druker, Petitioners-Appellants-Cross-Appellees v. Commissioner of Internal Revenue, Respondent-Appellee-Cross-AppellantCourt of Appeals for the Second Circuit · 1982
- Bonaire Development Co. v. CommissionerUnited States Tax Court · 1981
35 more not listed; retrieve them via the Exa API.