Heyman v. Commissioner
United States Tax Court
Interest charged by the construction lender during the construction period by simply debiting the borrower's loan accounts, thus reducing the amounts available to the borrower on the loans, was not interest "paid" by the borrower during the taxable year and, hence, is not fully deductible by the borrower in that year.
1Opinion of the Court
Drennen, Judge:
In these consolidated cases respondent determined 1972 income tax deficiencies as follows:
Docket No. Petitioners Deficiency
5294r-76 Richard S. Heyman and Rosalee A. Heyman .... $2,027.70
5295-76 Joseph S. Heyman and Virginia S. Heyman .7,679.27
The only issue for decision is whether interest charges for construction loans of petitioner-husbands’ partnership were paid in 1972 as required by section 163(a), I.R.C. 1954,1 for their deduction.
FINDINGS OF FACT
Some facts have been stipulated and are so found.
Petitioners Richard S. Heyman and Rosalee A. Heyman, husband and wife, resided…
2Cases cited11 opinions
- Helvering v. PriceSupreme Court of the United States · 1940
- G. Douglas Burck and Marjorie W. Burck v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1976
- Burck v. CommissionerUnited States Tax Court · 1975
- Wilkerson v. CommissionerUnited States Tax Court · 1978
- Rubnitz v. CommissionerUnited States Tax Court · 1977
6 more not listed; retrieve them via the Exa API.
3Cited by31 opinions
- Wirth v. CommonwealthSupreme Court of Pennsylvania · 2014
- Crown v. CommissionerUnited States Tax Court · 1981
- Blitzer v. United StatesUnited States Court of Claims · 1982
- Barry L. Battelstein and Jerry E. Battelstein v. Internal Revenue ServiceCourt of Appeals for the Fifth Circuit · 1980
- Garvey, Inc. v. United StatesUnited States Court of Claims · 1983
26 more not listed; retrieve them via the Exa API.