Russo v. Commissioner
United States Tax Court
1. A partnership in which P was a member constructed a building on certain property owned by it and, on Dec. 31, 1971, entered into a transaction in which it purported to sell the building and property. Most of the exterior of the building was completed more than 6 months before such transaction; however, the interior remained to be completed after such transaction.
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1. A partnership in which P was a member constructed a building on certain property owned by it and, on Dec. 31, 1971, entered into a transaction in which it purported to sell the building and property. Most of the exterior of the building was completed more than 6 months before such transaction; however, the interior remained to be completed after such transaction. Held: (a) Such transaction was a bona fide sale of the property by the partnership; (b) P has failed to establish that amounts designated as prepaid interest and "points" in the sale agreement represented part of the downpayment,…
1Opinion of the Court
Simpson, Judge:
The Commissioner determined a deficiency of $24,738.96 in the petitioner’s 1971 Federal income tax. The issues for decision are: (1) Whether a transaction in which a partnership purported to sell property is to be treated as a sale for Federal income tax purposes; (2) whether amounts designated as "points” and prepaid interest in the sale agreement should be treated as interest for Federal income tax purposes, or whether some portion of them should be treated as part of the purchase price of such property; (3) whether any portion of the gain from the sale qualifies for…
2Cases cited37 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- James v. United StatesSupreme Court of the United States · 1961
- Rutkin v. United StatesSupreme Court of the United States · 1952
- Helvering v. HammelSupreme Court of the United States · 1941
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
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3Cited by17 opinions
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