Levien v. Commissioner
United States Tax Court
P purchased computer equipment from a middle entity and leased the equipment back to third parties that had originally conveyed the equipment to the middle entity. P's payment obligations on his long-term purchaser note to the middle entity were exactly offset by the rental payments owed to him by the third parties.
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P purchased computer equipment from a middle entity and leased the equipment back to third parties that had originally conveyed the equipment to the middle entity. P's payment obligations on his long-term purchaser note to the middle entity were exactly offset by the rental payments owed to him by the third parties. Likewise, the payment obligations of the middle entity to the third parties were exactly offset by payments owed to it by P. An affiliate of the third parties guaranteed the lease payments to P. Sec. 465, I.R.C., limits deductions for losses from certain activities to the amount…
1Opinion of the Court
OPINION
Ruwe, Judge:
Respondent determined deficiencies, additions to tax, and additional interest against petitioners as follows:
Year Deficiency Additions to tax sec. 6659 Additional interest sec. 6621(c)
1983 $89,609 $26,883 120% of the interest due on $89,609
1984 68,210 20,463 120% of the interest due on $68,210
Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the taxable years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.
Respondent has conceded the additions to tax, and the parties have stipulated the…
2Cases cited12 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Borchers v. CommissionerUnited States Tax Court · 1990
- Richard J. Borchers Jane E. Borchers v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1991
- Porreca v. CommissionerUnited States Tax Court · 1986
7 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
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- Hayes v. CommissionerUnited States Tax Court · 1995
- OREN v. COMMISSIONERUnited States Tax Court · 2002
- Santulli v. CommissionerUnited States Tax Court · 1995
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