Crowley, Milner & Co. v. Commissioner
United States Tax Court
Petitioner entered into an arrangement with Prudential Insurance Co. of America whereby petitioner sold a store that it was constructing to Prudential at the store's fair market value and then leased the store from Prudential for 30 years at a fair market rental. Held, the transaction was a bona fide sale rather than a like-kind exchange under sec. 1031, I.R.C. 1954, and petitioner's loss on the sale is recognizable.
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Petitioner entered into an arrangement with Prudential Insurance Co. of America whereby petitioner sold a store that it was constructing to Prudential at the store's fair market value and then leased the store from Prudential for 30 years at a fair market rental. Held, the transaction was a bona fide sale rather than a like-kind exchange under sec. 1031, I.R.C. 1954, and petitioner's loss on the sale is recognizable. Leslie Co. v. Commissioner, 539 F.2d 943 (3d Cir. 1976), affg. 64 T.C. 247 (1975), followed. Held, further, petitioner's excess basis in the property over the sales price is not…
1Opinion of the Court
Crowley, Milner & Company, a Michigan Corporation, Petitioner v. Commissioner of Internal Revenue, Respondent
Crowley, Milner & Co. v. Commissioner
Docket No. 8828-78
United States Tax Court
76 T.C. 1030; 1981 U.S. Tax Ct. LEXIS 110;
June 17, 1981, Filed
Decision will be entered for the petitioner.
Petitioner entered into an arrangement with Prudential Insurance Co. of America whereby petitioner sold a store that it was constructing to Prudential at the store's fair market value and then leased the store from Prudential for 30 years at a fair market rental. Held, the transaction was a bona fide sale…
2Cases cited9 opinions
- Biggs v. CommissionerUnited States Tax Court · 1978
- Century Electric Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1951
- Franklin B. Biggs v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1980
- Koch v. CommissionerUnited States Tax Court · 1978
- Jordan Marsh Company v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1959
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