Miller v. Commissioner
United States Tax Court
Petitioner Samuel D. Miller, the prime lessee of a business property, granted a sublease at an increased rental to the purchaser of the going-concern business. During the taxable year in question, petitioner entered into two separate but contemporaneous agreements with his sublessee whereby the sublease was canceled in consideration of a $ 32,000 payment and all his interest in the prime lease was assigned to the former sublessee.
Read the full summary
Petitioner Samuel D. Miller, the prime lessee of a business property, granted a sublease at an increased rental to the purchaser of the going-concern business. During the taxable year in question, petitioner entered into two separate but contemporaneous agreements with his sublessee whereby the sublease was canceled in consideration of a $ 32,000 payment and all his interest in the prime lease was assigned to the former sublessee. Held, petitioner sold or exchanged a capital asset and is entitled to capital gains treatment for the $ 32,000 payment.
1Opinion of the Court
Hoyt, Judge:
Respondent determined a deficiency of $8,121.32 in the joint income tax of petitioners for the taxable year ended December 31, 1961. The only question for decision is whether an amount of money received in consideration of terminating a sublease agreement when accompanied by an assignment of the prime lease constitutes ordinary income to the lessee-sublessor or whether capital gains treatment is proper.
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly and adopted as our findings.
Petitioners Samuel D. Miller and Mollie K. Miller are husband and wife…
2Cases cited13 opinions
- Hort v. CommissionerSupreme Court of the United States · 1941
- Commissioner of Internal Revenue v. José FerrerCourt of Appeals for the Second Circuit · 1962
- Commissioner of Internal Revenue v. Golonsky. Commissioner of Internal Revenue v. GoldCourt of Appeals for the Third Circuit · 1952
- Commissioner of Internal Revenue v. RayCourt of Appeals for the Fifth Circuit · 1954
- Commissioner of Internal Revenue v. McCue Bros. & Drummond, IncCourt of Appeals for the Second Circuit · 1954
8 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Vander Hoek v. CommissionerUnited States Tax Court · 1968
- E. I. du Pont de Nemours & Co. v. United StatesDistrict Court, D. Delaware · 1969
- Bird v. CommissionerUnited States Tax Court · 1968
- Miller v. CommissionerUnited States Tax Court · 1967
- Vander Hoek v. CommissionerUnited States Tax Court · 1968