Lomas Santa Fe, Inc. v. Commissioner
United States Tax Court
As the first step in the development of a luxury residential community, X built a golf course and country club. The golf course and country club were to serve as a marketing tool for adjacent residential properties.
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As the first step in the development of a luxury residential community, X built a golf course and country club. The golf course and country club were to serve as a marketing tool for adjacent residential properties. To solve real estate title problems and to insulate X and its operations from the membership of the country club, X formed Y as a wholly owned subsidiary and transferred the assets of the golf course and country club to Y. Some assets were transferred outright, but some were transferred subject to a retained estate for 40 years in X. The estate for years was retained so that X…
1Opinion of the Court
Goffe, Judge:
The Commissioner determined a deficiency in the Federal income tax of petitioners for the taxable year ended July 31, 1973, in the amount of $107,460.76. Due to concessions, one issue remains to be decided: whether an estate for 40 years retained by petitioner Lomas Santa Fe, Inc., is an interest subject to an allowance for depreciation under section 167(a), I.R.C. 1954.1
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and the exhibits attached thereto are incorporated herein by this reference.
Lomas Santa Fe, Inc. (hereinafter Lomas), and its two…
2Cases cited35 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Higgins v. SmithSupreme Court of the United States · 1940
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- National Carbide Corp. v. CommissionerSupreme Court of the United States · 1949
- Burnet v. Commonwealth Improvement Co.Supreme Court of the United States · 1932
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3Cited by13 opinions
- Gordon v. CommissionerUnited States Tax Court · 1985
- Bertoli v. CommissionerUnited States Tax Court · 1994
- Chapman Glen Ltd. v. CommissionerUnited States Tax Court · 2013
- Lomas Santa Fe, Inc. v. CommissionerCourt of Appeals for the Ninth Circuit · 1982
- Richard Hansen Land, Inc. v. CommissionerUnited States Tax Court · 1993
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