Weish Homes, Inc. v. Commissioner
United States Tax Court
Petitioner, as owner in fee simple of unimproved land situated in Maryland, subdivided it into lots with the intention of building houses thereon. Upon finding a customer for the lot and house to be erected thereon, petitioner entered into a contract of sale with him which specified that the sale was subject to a ground rent.
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Petitioner, as owner in fee simple of unimproved land situated in Maryland, subdivided it into lots with the intention of building houses thereon. Upon finding a customer for the lot and house to be erected thereon, petitioner entered into a contract of sale with him which specified that the sale was subject to a ground rent. At or about the time of the completion of the house, petitioner entered into, with a straw corporation, a lease covering the lot and the improvements thereon for a term of 99 years, renewable forever, subject to a specified, annual ground rent. At the time of settlement,…
1Opinion of the Court
FisheR, Judge:
Respondent determined deficiencies in petitioner’s income tax as follows:
Tear Deficiency
1952- $48, 007. 88
1953_ 44. 831.86
1954- 86, 395.11
179,234. 85
Petitioner claims that overpayments of tax had been made for the taxable years 1952 and 1953 in the respective amounts of $308,462.08 and $75,000.
The issues raised by the pleadings are: (1) Whether the capitalized value of ground rents created or reserved by petitioner during the taxable years involved is includible in petitioner’s gross income for such years in the absence of sale or redemption during such years; (2) alternatively,…
2Cases cited11 opinions
- Morris Lipsitz, and Morris Lipsitz and Helen Lipsitz v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1955
- United Dressed Beef Co. v. CommissionerUnited States Tax Court · 1955
- Mary Lucinda Bosley v. Margaret E. WyattSupreme Court of the United States · 1853
- Kolker v. BiggsCourt of Appeals of Maryland · 2001
- Moran v. HammerslaCourt of Appeals of Maryland · 1947
6 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Koch v. CommissionerUnited States Tax Court · 1978
- Burbage v. CommissionerUnited States Tax Court · 1984
- Welsh Homes, Incorporated, and v. Commissioner of Internal Revenue, AndCourt of Appeals for the Fourth Circuit · 1960
- Hunter v. CommissionerUnited States Tax Court · 1965
- Kenneth A. Murry and Helen J. Murry v. Commissioner of Internal Revenue, Lakeside Garden Developers, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1979
19 more not listed; retrieve them via the Exa API.