Amey v. Commissioner
United States Tax Court
Payments made by a lessee of property to the mortgagee in reduction of the outstanding mortgage indebtedness constituted rental income to petitioner-lessor, even though petitioner was not personally liable on the mortgage.
1Opinion of the Court
OPINION.
Aeundell, Judge:
The petitioner acquired a 50 per cent interest in an apartment hotel, subject to a long-term lease and to two substantial mortgages on the hotel property. Under the terms of that lease, the lessee was to pay cash rentals to the owners of the property and, in addition, to pay the interest and principal amortization required by the holder of the two mortgages.
During the year in question, 1944, the lessee paid $29,385.78 to the Greenwich Savings Bank on account of amortization of the mortgage. The single question to be decided is whether that payment by the lessee to the…
2Cases cited5 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- United States v. Boston & Maine RailroadSupreme Court of the United States · 1929
- West End St. Ry. Co. v. MalleyCourt of Appeals for the First Circuit · 1917
- Commissioner of Internal Revenue v. Fortee Properties, Inc.Court of Appeals for the Second Circuit · 1954
- Fortee Properties, Inc. v. CommissionerUnited States Tax Court · 1952
3Cited by2 opinions
- Amey v. CommissionerUnited States Tax Court · 1954
- Norman v. CommissionerUnited States Tax Court · 1978