Highland Farms v. Commissioner
United States Tax Court
P, an accrual basis taxpayer, operates a continuing-care residential retirement community that has five types of accommodations: cluster homes or condominiums; apartments; a lodge; a rest home; and a skilled nursing health-care center. The rest home and health-care center are not involved in this case. The residents purchase the cluster homes or condominiums for the full purchase price and pay the taxes, insurance, and utilities for their unit.
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P, an accrual basis taxpayer, operates a continuing-care residential retirement community that has five types of accommodations: cluster homes or condominiums; apartments; a lodge; a rest home; and a skilled nursing health-care center. The rest home and health-care center are not involved in this case. The residents purchase the cluster homes or condominiums for the full purchase price and pay the taxes, insurance, and utilities for their unit. The cluster home or condominium owner can transfer the unit only to P which must repurchase the unit at certain percentages of the original purchase…
1Opinion of the Court
Parker, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax in the amount of $2,531,650 and an addition to tax under section 6661 in the amount of $632,913 for the taxable year 1988.1
Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the taxable year before the Court, and all Rule references are to the Tax Court Rules of Practice and Procedure.
After respondent’s concession,2 the issues for decision are: (1) Whether partially refundable entry fees paid by residents of the apartment and lodge units are includable in income…
2Cases cited17 opinions
- Thor Power Tool Co. v. CommissionerSupreme Court of the United States · 1979
- Weiss v. WeinerSupreme Court of the United States · 1929
- American Automobile Assn. v. United StatesSupreme Court of the United States · 1961
- Grodt & McKay Realty, Inc. v. CommissionerUnited States Tax Court · 1981
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
12 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Johnson v. CommissionerUnited States Tax Court · 1997
- Baker v. Comm'rUnited States Tax Court · 2002
- Herbel v. CommissionerUnited States Tax Court · 1996
- Erickson Post Acquisition, Inc. v. Comm'rUnited States Tax Court · 2003
- Straight v. CommissionerUnited States Tax Court · 1997
6 more not listed; retrieve them via the Exa API.