Metropolitan Bldg. Co. v. Commissioner
United States Tax Court
1. In the year 1952 pursuant to negotiations among all three parties concerned, petitioner transferred a portion of a leasehold burdened with a sublease to its lessor who thereupon canceled the sublease and entered into a long-term lease with the petitioner's prior sublessee. Held, the amount received from its own sublessee for the transfer was ordinary income to the petitioner.
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1. In the year 1952 pursuant to negotiations among all three parties concerned, petitioner transferred a portion of a leasehold burdened with a sublease to its lessor who thereupon canceled the sublease and entered into a long-term lease with the petitioner's prior sublessee. Held, the amount received from its own sublessee for the transfer was ordinary income to the petitioner. Hort v. Commissioner, 313 U.S. 28 (1941), followed. 2. In the year 1954, petitioner transferred the remaining portion of the leasehold which had about 10 months left to run to a third party. The lease was burdened…
1Opinion of the Court
Train, Judge:
Respondent determined deficiencies in petitioner’s income and excess profits taxes for the fiscal year ended June 30,1953, in the amount of $111,734.72, and for the fiscal year ended June 30, 1954, in the amount of $332,739.39.
The issues to be decided are (1) whether petitioner realized ordinary income or capital gain upon transferring certain leasehold interests to its lessor for which it received the sum of $137,000 from its own sublessee in September 1952; and (2) whether the petitioner realized ordinary income or capital gain upon transferring certain leasehold interests to a…
2Cases cited16 opinions
- Helvering v. HorstSupreme Court of the United States · 1940
- Blair v. CommissionerSupreme Court of the United States · 1937
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Hort v. CommissionerSupreme Court of the United States · 1941
- Commissioner of Internal Revenue v. Golonsky. Commissioner of Internal Revenue v. GoldCourt of Appeals for the Third Circuit · 1952
11 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Kingsbury v. CommissionerUnited States Tax Court · 1976
- Flitcroft v. CommissionerUnited States Tax Court · 1962
- Guggenheim v. CommissionerUnited States Tax Court · 1966
- King Broadcasting Co. v. CommissionerUnited States Tax Court · 1967
- Miller v. CommissionerUnited States Tax Court · 1967
7 more not listed; retrieve them via the Exa API.