Hoopengarner v. Commissioner
United States Tax Court
In April of 1976, petitioner acquired a leasehold interest in a parcel of undeveloped land. The lease, which ran for 52 1/2 years at the time of acquisition, required petitioner to construct and operate an office building on the leased premises. During 1976, petitioner made rental payments pursuant to the lease.
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In April of 1976, petitioner acquired a leasehold interest in a parcel of undeveloped land. The lease, which ran for 52 1/2 years at the time of acquisition, required petitioner to construct and operate an office building on the leased premises. During 1976, petitioner made rental payments pursuant to the lease. Construction of the building was completed in September of 1977. Held, the 1976 rental payments are not deductible pursuant to sec. 162, I.R.C. 1954, since petitioner was not carrying on a trade or business at the time they were made. Held, further, part of the rental payments are…
1Opinion of the Court
OPINION
Sterrett, Judge:
By statutory notice dated July 6, 1979, respondent determined a deficiency of $8,379 in petitioners’ Federal income tax for their 1976 taxable year. After concessions, the sole issue for decision is whether certain lease payments made by petitioners in 1976 are deductible under section 162(a), I.R.C. 1954, or alternatively, under section 212.
The facts have been fully stipulated pursuant to Rule 122, Tax Court Rules of Practice and Procedure. The stipulation of facts and exhibits attached thereto are incorporated herein by this reference.
Petitioners Herschel H.…
2Cases cited33 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- United States v. GilmoreSupreme Court of the United States · 1963
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Commissioner v. Idaho Power Co.Supreme Court of the United States · 1974
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- Alex A. Aboussie, Alice Aboussie, Robert Aboussie and Linda Aboussie v. United StatesCourt of Appeals for the Eighth Circuit · 1985
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