Appleby v. Commissioner
United States Board of Tax Appeals
1. Tenants in common of inherited real property which they improved and rented held not within the term partnership under section 801, Revenue Act of 1934, and each of them may offset the income from such property by his individual capital losses. 2. The basis for gain from a condemnation award in respect of inherited property held to include the cost of improvements and the basis of structures demolished for the purpose of new construction. 3. An amount added to a…
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1. Tenants in common of inherited real property which they improved and rented held not within the term partnership under section 801, Revenue Act of 1934, and each of them may offset the income from such property by his individual capital losses. 2. The basis for gain from a condemnation award in respect of inherited property held to include the cost of improvements and the basis of structures demolished for the purpose of new construction. 3. An amount added to a condemnation award because of a delay in payment held part of the award taxable as capital gain and not interest.
1Opinion of the Court
*20OPINION.
Steen hagen :
1. The Commissioner held that the “operation of a garage by the [two brothers] should be classified as a partnership within the meaning of section 801 of the Revenue Act of 1934.”1
The evidence shows that the garage was not operated by the taxpayers, and the postulate of the Commissioner’s determination is not correct. They built it at the suggestion of two automobile dealers, for the purpose of leasing it to them, and the lessees operated it. Petitioners were merely the owners of the property, which was improved and rented primarily to defray the taxes.
The respondent…
2Cases cited5 opinions
- Poe v. SeabornSupreme Court of the United States · 1930
- Morrissey v. CommissionerSupreme Court of the United States · 1935
- Tyler v. United StatesSupreme Court of the United States · 1930
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Helvering v. WinmillSupreme Court of the United States · 1938
3Cited by47 opinions
- Madison Gas and Electric Company v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1980
- Madison Gas & Electric Co. v. CommissionerUnited States Tax Court · 1979
- Vaira v. CommissionerUnited States Tax Court · 1969
- Estado Libre Asociado v. Fonalledas CórdovaSupreme Court of Puerto Rico · 1962
- Demirjian v. CommissionerUnited States Tax Court · 1970
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