Beek v. Commissioner
United States Tax Court
In 1976, a cash basis partnership acquired real estate for $ 2 million, payable $ 300,000 in cash and $ 1,700,000 in a 10-year wraparound note, bearing interest at 8 1/4 percent.
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In 1976, a cash basis partnership acquired real estate for $ 2 million, payable $ 300,000 in cash and $ 1,700,000 in a 10-year wraparound note, bearing interest at 8 1/4 percent. That year, the partnership made several payments in reduction of the principal and interest due on the note for 1976 and 1977. Held, the portion of the payments attributable to interest for 1976 and 1977 are interest on indebtedness within the meaning of sec. 163(a), I.R.C. 1954, and do not represent additional payments of purchase price. Hudson-Duncan & Co. v. Commissioner, 36 B.T.A. 554 (1937), followed. Held,…
1Opinion of the Court
OPINION
Nims, Judge:
In these consolidated cases, respondent determined deficiencies and, by answer, alternative deficiences, in petitioners’ Federal income taxes for the taxable year 1976, as follows:
Deficiency Deficiency
Docket No. per notice per answer
10037-80 .$1,380.00 $1,850.00
10038-80 . 1,173.00 1,489.00
10039-80 . 700.00 910.00
10040-80 . 1,610.00 2,100.00
10041-80 . 1,036.00 1,432.00
10042-80 . 1,837.66 2,491.50
10043-80 . 1,850.00 2,468.00
10044-80 . 442.00 592.00
10045-80 . 2,223.00 3,033.00
10046-80 . 360.00 478.00
10047-80 . 615.00 884.00
10048-80 . 248.00 333.00
10049-80 . 378.00 504.00
10050-8…
2Cases cited21 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Mills v. CommissionerUnited States Tax Court · 1948
- Hogg v. RuffnerSupreme Court of the United States · 1861
- Van Raden v. CommissionerUnited States Tax Court · 1979
- Verbeck v. ClymerCalifornia Supreme Court · 1927
16 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Barton Beek and Dorothy M. Beek v. Commissioner of Internal Revenue, Gerald T. And Anne Sparling v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1985
- Cameron v. CommissionerUnited States Tax Court · 1983
- Beek v. CommissionerUnited States Tax Court · 1983
- Cameron v. CommissionerUnited States Tax Court · 1983
- Estate of Van Loben Sels v. CommissionerUnited States Tax Court · 1986
5 more not listed; retrieve them via the Exa API.