Davis v. Commissioner
United States Tax Court
1. Petitioner, one of three licensed retail liquor dealers in Clinton, Tennessee, all of whom were restricted to operating within a 3-block area located approximately in the center of the Clinton business district, operated his liquor store during 1948, 1949, and 1950, on premises leased from his father at a rental of 5 per cent of gross sales with a minimum guarantee of $ 200 per month. The property, prior to 1948, had rented for $ 140 per month.
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1. Petitioner, one of three licensed retail liquor dealers in Clinton, Tennessee, all of whom were restricted to operating within a 3-block area located approximately in the center of the Clinton business district, operated his liquor store during 1948, 1949, and 1950, on premises leased from his father at a rental of 5 per cent of gross sales with a minimum guarantee of $ 200 per month. The property, prior to 1948, had rented for $ 140 per month. It was purchased for his father in 1948 at petitioner's suggestion. The purchase price was $ 9,800. The rental under the percentage arrangement was…
1Opinion of the Court
OPINION.
Fisher, Judge :
Bespondent has disallowed rental payments made by petitioner in 1948, 1949, and 1950, in excess of $3,600 per year on the ground that such amounts were excessive and were not required to be made as a condition to the continued use or possession of the property under section 23 (a) (1) (A).
Section 23 (a) (1) (A) provides for the deduction of all ordinary and necessary business expenses, including “rentals or other payments required to be made as a condition to the continued use or possession * * * of property to which the taxpayer has not taken or is not taking title or…
2Cases cited6 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Textile Mills Securities Corp. v. CommissionerSupreme Court of the United States · 1941
- Place v. CommissionerUnited States Tax Court · 1951
- Utter-Mckinley Mortuaries, a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- McClintock-Trunkey Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1954
1 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Levenson & Klein, Inc. v. CommissionerUnited States Tax Court · 1977
- Anderson Dairy, Inc. v. CommissionerUnited States Tax Court · 1963
- Feldman v. CommissionerUnited States Tax Court · 1985
- Royal Farms Dairy Co. v. CommissionerUnited States Tax Court · 1963
- Jordan v. CommissionerUnited States Tax Court · 1973
35 more not listed; retrieve them via the Exa API.