Bellingham Cold Storage Co. v. Commissioner
United States Tax Court
Petitioner leased improved properties on 50-year and 46-year, 11-month leases from the Port, a public agency which financed construction of the improvements through the sale of industrial development bonds.
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Petitioner leased improved properties on 50-year and 46-year, 11-month leases from the Port, a public agency which financed construction of the improvements through the sale of industrial development bonds. Under the 50-year lease, covering 12.75 acres, the monthly rental was $ 7,900 for the first 16 months, $ 7,500 for the next 17 years, 5 months, $ 4,750 for the next 4 years and 2 months, and thereafter was to be renegotiated at a rate not less than the Port's then average ground rent for other tenants. Under the 46-year, 11-month lease, covering 1.96 acres, the rent was $ 4,500 for 30…
1Opinion of the Court
Hall, Judge:
Respondent determined the following deficiencies:
TYEJune30— Deficiency
1969 _ $25,436
1970 _ 43,254
1971_ 41,256
Concessions having been made by the parties, the only question that remains is whether rental payments made by the petitioner during the years at issue were partly for future use and occupancy of leased improvements. Petitioner claims the entire rental payments are deductible currently, whereas respondent claims that a portion thereof must be amortized over the term of the lease.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
Petitioner Bellingham…
2Cases cited13 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- American Metal Products Corporation v. Commissioner of Internal Revenue, Adler Metal Products Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1961
- American Metal Products Corp. v. CommissionerUnited States Tax Court · 1960
- Southern Ford Tractor Corp. v. CommissionerUnited States Tax Court · 1958
- Baton Coal Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1931
8 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Consolidated Foods Corp. v. CommissionerUnited States Tax Court · 1976
- Velvet Horn, Inc. v. CommissionerUnited States Tax Court · 1981
- Bellingham Cold Storage Co. v. CommissionerUnited States Tax Court · 1975
- Cal-Maine Foods, Inc. v. CommissionerUnited States Tax Court · 1977
- Consolidated Foods Corp. v. CommissionerUnited States Tax Court · 1976