Boston Fish Market Corp. v. Commissioner
United States Tax Court
Upon termination of various leases of certain of its property, petitioner received a cash payment of $ 47,500 in settlement of the tenant's obligation, under the controlling agreements, to restore leasehold improvements on the premises to their original, prelease condition. Held, such a cash payment is not excludable from gross income under sec. 109, I.R.C. 1954, and is taxable as capital gain to to the extent that it exceeds the basis of the leasehold improvements.
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined deficiencies of $6,750.59 and $76,871.67 in petitioners’ income tax for the calendar years 1966 and 1968, respectively. The principal issue for decision is whether $47,500 paid to petitioner in 1968 by one of its tenants in satisfaction of the tenant’s obligation to restore certain leased premises to their original, prelease condition, is excludable from gross income under section 109, I.R.C. 1954, or taxable in the same manner as an amount received from the sale or exchange of a capital asset (sections 1221 and 1231, I.R.C. 1954). The facts have…
2Cases cited5 opinions
- Helvering v. BruunSupreme Court of the United States · 1940
- Waggoner v. CommissionerUnited States Tax Court · 1950
- Tobias v. CommissionerUnited States Tax Court · 1963
- Washington Fireproof Bldg. Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Bardes v. CommissionerUnited States Tax Court · 1962
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- Boston Fish Market Corp. v. CommissionerUnited States Tax Court · 1972
- Sirbo Holdings, Inc. v. CommissionerUnited States Tax Court · 1974