Cunningham v. Commissioner
United States Tax Court
Improvements by Lessee on Lessor's Property -- Sec. 22 (a) and (b) (11), I. R. C. 1939. -- The owner of real estate leased the property to a corporation of which she was a principal stockholder, manager, and financial backer. Under the lease the corporation was to make certain improvements upon the lots, pay the taxes on the property, and transfer title to the improvements to the lessor at the termination of the lease.
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Improvements by Lessee on Lessor's Property -- Sec. 22 (a) and (b) (11), I. R. C. 1939. -- The owner of real estate leased the property to a corporation of which she was a principal stockholder, manager, and financial backer. Under the lease the corporation was to make certain improvements upon the lots, pay the taxes on the property, and transfer title to the improvements to the lessor at the termination of the lease. The evidence establishes that the parties did not intend that the value of the improvements should constitute rent, but that the improvements were intended to benefit the…
1Opinion of the Court
Atkins, Judge:
The respondent determined deficiencies in income tax for the years 1946 and 1952 in the respective amounts of $6,725.59 and $9,528.54. The question presented for decision is whether any amount should be included in gross income of the petitioners in either 1946 or 1952, on account of improvements constructed in 1946 by a lessee under a 6-year lease expiring in 1952, and, if so, the amount to be included.
FINDINGS OF FACT.
Some of the facts are stipulated and are so found, the stipulation being incorporated herein by this reference.
The petitioners are husband and wife residing in…
2Cases cited7 opinions
- Helvering v. BruunSupreme Court of the United States · 1940
- M. E. Blatt Co. v. United StatesSupreme Court of the United States · 1938
- Miller v. GearinCourt of Appeals for the Ninth Circuit · 1919
- Hewitt Realty Co. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1935
- Greenwood Packing Plant v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1942
2 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Fieland v. CommissionerUnited States Tax Court · 1980
- Hilldun Corp. v. CommissionerUnited States Tax Court · 1967
- MCGRATH v. COMMISSIONERUnited States Tax Court · 2002
- Cash & Lincoln Fence Co. v. CommissionerUnited States Tax Court · 1982
- Cunningham v. CommissionerUnited States Tax Court · 1957
1 more not listed; retrieve them via the Exa API.