Sirbo Holdings, Inc. v. Commissioner
United States Tax Court
The petitioner leased its property for use as a theater or broadcast studio pursuant to a lease whereby the lessee was obligated to restore the property to its original condition, reasonable wear and tear excepted. In the negotiations for a new lease, the lessee paid the petitioner $ 125,000 for "updating" the restoration clause.
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The petitioner leased its property for use as a theater or broadcast studio pursuant to a lease whereby the lessee was obligated to restore the property to its original condition, reasonable wear and tear excepted. In the negotiations for a new lease, the lessee paid the petitioner $ 125,000 for "updating" the restoration clause. Held, the payment in question did not constitute an amount received on account of a sale or exchange or a compulsory or involuntary conversion of property within the meaning of sec. 1231, I.R.C. 1954.
1Opinion of the Court
Sirbo Holdings, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Sirbo Holdings, Inc. v. Commissioner
Docket No. 515-69
United States Tax Court
61 T.C. 723; 1974 U.S. Tax Ct. LEXIS 142; 61 T.C. No. 77;
March 13, 1974, Filed
Decision will be entered for the respondent.
The petitioner leased its property for use as a theater or broadcast studio pursuant to a lease whereby the lessee was obligated to restore the property to its original condition, reasonable wear and tear excepted. In the negotiations for a new lease, the lessee paid the petitioner $ 125,000 for "updating" the…
2Cases cited14 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Commissioner v. BrownSupreme Court of the United States · 1965
- Helvering v. HammelSupreme Court of the United States · 1941
- Fairbanks v. United StatesSupreme Court of the United States · 1939
- Commissioner of Internal Revenue v. José FerrerCourt of Appeals for the Second Circuit · 1962
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