Belz Inv. Co. v. Commissioner
United States Tax Court
1. Petitioner's subsidiary, Expressway, sold a Holiday Inn to Holiday Inns of America, Inc., in a sale-leaseback agreement which contained an option to repurchase.
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1. Petitioner's subsidiary, Expressway, sold a Holiday Inn to Holiday Inns of America, Inc., in a sale-leaseback agreement which contained an option to repurchase. Held, all of the rental payments made by Expressway to Holiday during the year 1973 were deductible by Expressway as rent. 2. Petitioner constructed three special purpose stores for Miller-Wohl Co., Inc., on property owned by petitioner in Memphis, Tenn., and leased the properties to Miller-Wohl, which guaranteed payment of the rent. The construction was financed through independent financial institutions which, under the terms of…
1Opinion of the Court
Drennen, Judge:
Respondent determined the following deficiencies in, and additions to, the Federal corporate income tax of petitioner:
Addition to tax Taxable year1 Deficiency under sec. 6653(a)2
1970 . $102,568.94 $5,128.45
1978 . 278,221.25 13,911.06
After concessions by both parties,3 the three issues which remain for the Court’s decision are:(1) Whether payments made in 1973 by petitioner’s subsidiary pursuant to a lease agreement executed in a sale-leaseback with option to repurchase transaction relative to a Holiday Inn were deductible as rental expenses or were nondeductible as amount…
2Cases cited19 opinions
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
- Hort v. CommissionerSupreme Court of the United States · 1941
- Helvering v. F. & R. Lazarus & Co.Supreme Court of the United States · 1939
- Walburga Oesterreich v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- Bolger v. CommissionerUnited States Tax Court · 1973
14 more not listed; retrieve them via the Exa API.
3Cited by26 opinions
- Estate of Thomas v. CommissionerUnited States Tax Court · 1985
- Metra Chem Corp. v. CommissionerUnited States Tax Court · 1987
- Hilton v. CommissionerUnited States Tax Court · 1980
- Kansas City S. R. Co. v. CommissionerUnited States Tax Court · 1981
- Cramer v. CommissionerUnited States Tax Court · 1993
21 more not listed; retrieve them via the Exa API.