Glenwood Sanatorium v. Commissioner
United States Tax Court
Rental expense accrued and set off by petitioner corporation against amounts previously advanced to landlord-stockholder so as to reduce the latter's liability thereon held not barred as a deductible expense by section 24 (c), Internal Revenue Code. Michael Flynn Mfg. Co., 3 T. C. 932, followed.
1Opinion of the Court
OPINION.
Opper, Judge:
In order to sustain respondent’s disallowance of petitioner’s rental deduction all three elements of section 24 (c), Internal Revenue Code, must be present.1 Akron Welding & Spring Co., 10 T. C. 715. Granting that constructive receipt by the payee would not constitute constructive payment by petitioner under subsection (1), P. G. Lake, Inc., 4 T. C. 1, affd. (C. A. 5) 148 F. 2d 898; Granberg Equipment, Inc., 11 T. C. 704, the amount would nevertheless be in-cludible in the payee’s income under subsection (2), Michael Flynn Mfg. Co., 3 T. C. 932; cf. Anthony P. Miller,…
2Cases cited9 opinions
- Acer Realty Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1942
- Michael Flynn Mfg. Co. v. CommissionerUnited States Tax Court · 1944
- Anthony P. Miller, Inc. v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1947
- Ohio Battery & Ignition Co. v. CommissionerUnited States Tax Court · 1945
- PG Lake, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1945
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3Cited by1 opinion
- Glenwood Sanatorium v. CommissionerUnited States Tax Court · 1953