Noble v. Commissioner
United States Tax Court
Noble and Rutland, shopping center developers, maintained checking accounts for each shopping center under development with their construction lender. The construction lender made disbursements of all loan proceeds to Noble and Rutland, although, under construction loan agreements, it was entitled to charge interest on the construction loans in favor of itself directly against loan proceeds and thereafter treat such charges as disbursements of loan proceeds.
Read the full summary
Noble and Rutland, shopping center developers, maintained checking accounts for each shopping center under development with their construction lender. The construction lender made disbursements of all loan proceeds to Noble and Rutland, although, under construction loan agreements, it was entitled to charge interest on the construction loans in favor of itself directly against loan proceeds and thereafter treat such charges as disbursements of loan proceeds. Noble and Rutland drew checks payable to the construction lender for commitment fees and interest as they became due. Held, commitment…
1Opinion of the Court
Irwin, Judge:
In these consolidated cases, respondent determined the following deficiencies in petitioner^’ Federal income taxes:
Docket No. Petitioners Year Deficiency
9179-79 John B. Noble, Jr., 1974 $48,723.84 and Susan S. Noble
9180-79 James W. Rutland, Jr., 1974 9,063.30 and Lucile H. Rutland 1975 24,021.06
Concessions having been made by the parties, the issues remaining for our decision are: (1) Whether petitioners John B. Noble, Jr. (Noble), and James W. Rutland, Jr. (Rutland), "paid” certain interest charges and fees representing interest within the meaning of section 163(a)1 when they…
2Cases cited28 opinions
- Larry Bonner v. City of Prichard, AlabamaCourt of Appeals for the Eleventh Circuit · 1981
- Enoch v. CommissionerUnited States Tax Court · 1972
- Goodwin v. CommissionerUnited States Tax Court · 1980
- G. Douglas Burck and Marjorie W. Burck v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1976
- Crown v. CommissionerUnited States Tax Court · 1981
23 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Alex A. Aboussie, Alice Aboussie, Robert Aboussie and Linda Aboussie v. United StatesCourt of Appeals for the Eighth Circuit · 1985
- Huntsman v. CommissionerUnited States Tax Court · 1988
- Menz v. CommissionerUnited States Tax Court · 1983
- Aboussie v. United StatesDistrict Court, E.D. Missouri · 1984
- Gaines v. CommissionerUnited States Tax Court · 1982
6 more not listed; retrieve them via the Exa API.