May v. Commissioner
United States Tax Court
H and W transferred their entire title and interest in real property used in H's medical practice to an irrevocable trust for the benefit of their children. The trust instrument appointed H and a friend as cotrustees. H leased the property from the trust without a written lease and made monthly payments as rent to the trust.
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H and W transferred their entire title and interest in real property used in H's medical practice to an irrevocable trust for the benefit of their children. The trust instrument appointed H and a friend as cotrustees. H leased the property from the trust without a written lease and made monthly payments as rent to the trust. Held, the payments by H were ordinary and necessary business expenses under sec. 162(a), I.R.C. 1954. Mathews v. Commissioner, 61 T.C. 12 (1973), revd. 520 F.2d 323 (5th Cir. 1975), cert. denied 424 U.S. 967 (1976), followed.
1Concurrence
Goffe, /.,
concurring: Dr. May is undoubedly entitled to deduct the rentals paid to the trust in 1973. However, I arrive at this conclusion in quite a different manner than does the majority. Those reading the majority’s opinion are no doubt confused by its treatment of the “independent trustee” requirement. It first announces that the independence of the trustee is an important consideration; it then makes the critical finding that the trustees in the instant case were independent of Dr. May; and, finally, it announces that “we need not decide whether an independent trustee is required in…
2Cases cited35 opinions
- Commissioner v. DubersteinSupreme Court of the United States · 1960
- Helvering v. CliffordSupreme Court of the United States · 1940
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Furman v. CommissionerUnited States Tax Court · 1966
- Irvine K. Furman and Lorena K. Furman v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1967
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