Koshland v. Commissioner
United States Tax Court
Adjusted Gross Income -- Deduction Attributable to Rents -- Interest. -- The petitioner, prior to the taxable years, borrowed money on unsecured notes to purchase interests in rental property.
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Adjusted Gross Income -- Deduction Attributable to Rents -- Interest. -- The petitioner, prior to the taxable years, borrowed money on unsecured notes to purchase interests in rental property. Held, that the interest paid on the notes in the taxable years shall be deducted from gross income in arriving at adjusted gross income as a deduction allowed by section 23 which is "attributable" to property held for the production of rents within the meaning and intent of subsection (4) of section 22 (n) of the Code.
1Opinion of the Court
OPINION.
Harron, Judge:
The question to be decided is whether interest in the amount of $16,500 is attributable to property held for the production of rents within the meaning and intent of section 22 (n) (4) .1
Upon the evidence, it has been found as a fact that the notes upon which the interest in question has been paid were unsecured purchase money notes. It is concluded, therefore, that the interest represents a deduction attributable to property held for the production of income under section 22 (n) (4). It is immaterial that the notes were not secured by a mortgage on the property. Cf.…
2Cited by6 opinions
- Koufos v. Indiana Department of State RevenueIndiana Tax Court · 1995
- Goddard v. CommissionerUnited States Tax Court · 1962
- E. W. Brown, Jr. And Elizabeth S. Brown v. United StatesCourt of Appeals for the Fifth Circuit · 1970
- Koshland v. CommissionerUnited States Tax Court · 1953
- Koshland v. CommissionerCourt of Appeals for the Ninth Circuit · 1954
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