Miller v. Commissioner
United States Tax Court
Petitioners, as general partners, obtained recourse financing from an unrelated creditor and purchased a crane. The partnership entered into a short-term lease of the crane to petitioners' closely held corporation at a fair rental value. The partnership incurred ordinary and necessary expenses for maintenance and repair of the crane during the first 12 months of the lease term that exceeded 15 percent of the lease payments received from the lessee.
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Petitioners, as general partners, obtained recourse financing from an unrelated creditor and purchased a crane. The partnership entered into a short-term lease of the crane to petitioners' closely held corporation at a fair rental value. The partnership incurred ordinary and necessary expenses for maintenance and repair of the crane during the first 12 months of the lease term that exceeded 15 percent of the lease payments received from the lessee. Held, petitioners are entitled to investment tax credits with respect to the crane pursuant to sec. 46(e)(3)(B), I.R.C. 1954.
1Opinion of the Court
OPINION
Swift, Judge:
In timely statutory notices of deficiency, respondent determined deficiencies in petitioners’ Federal income tax liabilities as follows:
Petitioners Year Deficiencies
Robert J. Miller 1976 1$5,805
and Susan F. Miller 1979 60,877
Samuel Edelman 1979 9,024
and Sylvia Edelman Phillip Paley 1979 5,496
and Dorene Paley Harold W. Paley 1979 9,294
The sole issue for decision is whether petitioners, as noncor-porate lessors, are entitled to investment tax credits with respect to a crane that was leased by them as partners to their closely held corporation.
All of the facts have been…
2Cases cited16 opinions
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
- Curphey v. CommissionerUnited States Tax Court · 1980
- Hazard v. CommissionerUnited States Tax Court · 1946
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3Cited by11 opinions
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- Cooper v. CommissionerUnited States Tax Court · 1987
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