Brockman Bldg. Corp. v. Commissioner
United States Tax Court
Petitioner, lessee of a building, subleased a part of that building to another corporation. The sublessee agreed to pay a fixed rental for its lease. By a separate agreement made with a trustee, the sublessee agreed to pay a percentage of its sales, over a certain amount, to the trustee for the benefit of certain persons and corporations, who were petitioner's stockholders and creditors.
Read the full summary
Petitioner, lessee of a building, subleased a part of that building to another corporation. The sublessee agreed to pay a fixed rental for its lease. By a separate agreement made with a trustee, the sublessee agreed to pay a percentage of its sales, over a certain amount, to the trustee for the benefit of certain persons and corporations, who were petitioner's stockholders and creditors. Held, the payments made to the trust by the sublessee were taxable to the petitioner as its income. United States v. Joliet & Chicago R. Co., 315 U.S. 44. Held, further, petitioner is not liable for additions…
1Opinion of the Court
OPINION.
Raum, Judge:
1. Petitioner is the lessee of a 12-story business building in Los Angeles known as the Brockman Building. Petitioner does not itself occupy the building. It subleases the space to a number of tenants, and, in effect, manages the property. The principal tenant for a number of years has been J. J. Haggarty Stores, Inc., a retail, woman’s clothing store, which occupies the ground floor, basement, and several upper floors. In 1942, Haggarty entered into a new sublease providing for certain fixed rentals. Simultaneously, and as part of the same transaction, Haggarty also bound…
2Cases cited18 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- United States v. Boston & Maine RailroadSupreme Court of the United States · 1929
- United States v. Joliet & Chicago RailroadSupreme Court of the United States · 1942
- Raybestos-Manhattan, Inc. v. United StatesSupreme Court of the United States · 1935
- Rensselaer & S. R. v. IrwinCourt of Appeals for the Second Circuit · 1918
13 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Conlorez Corp. v. CommissionerUnited States Tax Court · 1968
- James O. Druker and Joan S. Druker, Petitioners-Appellants-Cross-Appellees v. Commissioner of Internal Revenue, Respondent-Appellee-Cross-AppellantCourt of Appeals for the Second Circuit · 1982
- Brockman Building Corporation, Inc., a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1956
- Harris v. CommissionerUnited States Tax Court · 1969
- Brockman Bldg. Corp. v. CommissionerUnited States Tax Court · 1953
3 more not listed; retrieve them via the Exa API.