Frankenfield v. Commissioner
United States Tax Court
Payments Under Lease -- Capital Gain or Ordinary Income. -- Petitioner and others owned and were lessors of real estate for a 50-year term. The lessee constructed a building thereon which by the terms of the lease would become the property of the lessors on termination. Thirteen years before the lease was to terminate the parties executed a new lease for another 50-year term to begin on termination of the first.
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Payments Under Lease -- Capital Gain or Ordinary Income. -- Petitioner and others owned and were lessors of real estate for a 50-year term. The lessee constructed a building thereon which by the terms of the lease would become the property of the lessors on termination. Thirteen years before the lease was to terminate the parties executed a new lease for another 50-year term to begin on termination of the first. The new lease contained a provision for payment of $ 475 per month by lessee to lessors during the interim, purportedly in consideration of a sale by lessors to lessee of the building…
1Opinion of the Court
OPINION.
Tietjens, Judge:
The following deficiencies in income tax are involved in these consolidated proceedings:
DoeleetNo. ■ Tear " Amount
28270 -1946-'_$1,905.53
28269 _1947- 1,716.13
28271 _1948_I_ 2,378.57
The sole issue is whether monthly payments received under the terms of a lease constituted ordinary income, as determined by respondent, or amounts received from the sale of a capital asset subject to the provisions of section 117 of the Internal Revenue Code, as contended by petitioners.
Another issue involving a gift contribution for the year 1946 has been settled by amendments to the…
2Cases cited7 opinions
- Bowen v. CommissionerUnited States Tax Court · 1949
- Gilken Corporation v. Commissioner of Internal Rev.Court of Appeals for the Sixth Circuit · 1949
- Gilken Corp. v. CommissionerUnited States Tax Court · 1948
- Hirsch Improvement Co. v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1944
- Crile v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1932
2 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Jahn v. CommissionerUnited States Tax Court · 1972
- Meyer Bros., Inc. v. CommissionerUnited States Tax Court · 1952
- Fifteen Hundred Walnut Street Corp. v. CommissionerUnited States Tax Court · 1955
- Fifteen Hundred Walnut Street Corp. v. CommissionerUnited States Tax Court · 1955
- Frankenfield v. CommissionerUnited States Tax Court · 1952
3 more not listed; retrieve them via the Exa API.