Drake University v. Commissioner

Drake University, Petitioner, v. Commissioner of Internal Revenue, Respondent

Drake University v. Commissioner

Docket No. 1388-63

United States Tax Court

44 T.C. 70; 1965 U.S. Tax Ct. LEXIS 101;

April 14, 1965, Filed

Decision will be entered under Rule 50.

Held, rental income paid by a sublessee to a third party is income taxable to the sublessor.

A. Roger Witke, for the petitioner.

Ronald M. Frykberg, for the respondent.

Bruce, Judge.

BRUCE

OPINION

Respondent determined a deficiency in the income tax of the Butters Realty Co. for the year 1960 in the amount of $ 283.35. The sole issue is whether rental…