De Golia v. Commissioner
United States Board of Tax Appeals
A sum of money paid to lessors, on the cash basis, upon execution of a lease, which is applicable to rent for the last months of the term of the lease, in the event the lessees comply with all covenants, constituted income, taxable to the lessors in the year in which received, where no provision appears in the lease for the return of any part of the payment to the lessee upon the happening of any contingency in the future.
1Opinion of the Court
*847OPINION.
Haibron:
Petitioners did not include the sum of $20,000 in gross income for the year 1935. The Commissioner added that amount to taxable income as prepaid rent, taxable in the year of receipt. Whether or not the determination of the Commissioner is correct depends upon the construction to be placed upon the terms of the lease and upon the special considerations which must be given to the receipt of income, under the pertinent revenue act, by taxpayers reporting income on a cash basis.
The considerations here necessarily differ from considerations which would be pertinent in another type…
2Cases cited5 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Brown v. HelveringSupreme Court of the United States · 1934
- Central Trust Co. of Ill. v. Chicago Auditorium Assn.Supreme Court of the United States · 1916
- Walter H. Sullivan, Inc. v. JohnsonCalifornia Court of Appeal · 1931
- Yazoo & Mississippi Valley Railroad v. AdamsSupreme Court of the United States · 1901
3Cited by3 opinions
- De Golia v. CommissionerUnited States Board of Tax Appeals · 1939
- E. B. Elliott Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Ericksen v. CommissionerUnited States Tax Court · 1964