Brown v. Commissioner
United States Tax Court
Petitioners, husband and wife, are engaged as partners in the general contracting and coal-mining business. In 1943 petitioners acquired a 35-acre tract of coal land, and another tract upon which was located a railroad siding which petitioners were then using in their coal-mining operations.
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Petitioners, husband and wife, are engaged as partners in the general contracting and coal-mining business. In 1943 petitioners acquired a 35-acre tract of coal land, and another tract upon which was located a railroad siding which petitioners were then using in their coal-mining operations. Petitioners devised a plan under which these properties were to be conveyed to a trustee of two trusts for their minor children, who was to lease the properties back to petitioners for the purpose of carrying on their partnership coal operations. The necessary legal documents putting into effect the plan…
1Opinion of the Court
OPINION.
Leech, Judge:
The principal issue is whether petitioners are entitled to deduct the amounts paid in 1944 to two trusts, either as rents or royalties, or as ordinary and necessary expenses of their partnership business under the provisions of section 23 (a) (1) (A) of the Internal Revenue Code.1 Petitioners contend that the respective amounts are deductible under the rationale of Skemp v. Commissioner, 168 Fed. (2d) 598, reversing 8 T. C. 415. The respondent’s position is that the plan devised and executed by petitioners, under which they transferred certain properties to a trustee for…
2Cases cited2 opinions
- Greene v. CommissionerUnited States Tax Court · 1946
- Skemp v. CommissionerUnited States Tax Court · 1947
3Cited by36 opinions
- Furman v. CommissionerUnited States Tax Court · 1966
- Brown v. Commissioner of Internal Revenue (Two Cases)Court of Appeals for the Third Circuit · 1950
- Mathews v. CommissionerUnited States Tax Court · 1973
- Oakes v. Comm'rUnited States Tax Court · 1965
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
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