Sanborn v. Commissioner
United States Tax Court
W and H entered into a transaction in December 1967 which, in form, was a sale from W to H and a leaseback from H to W. Petitioner-husbands were the shareholders of W, a subchapter S corporation. Held: (1) The transaction is in substance a sale-leaseback, petitioners having failed to present "strong proof" that the transaction is a financing arrangement.
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W and H entered into a transaction in December 1967 which, in form, was a sale from W to H and a leaseback from H to W. Petitioner-husbands were the shareholders of W, a subchapter S corporation. Held: (1) The transaction is in substance a sale-leaseback, petitioners having failed to present "strong proof" that the transaction is a financing arrangement. Accordingly, W received interest income from H in W's fiscal year 1970. Held: (2) In applying the passive income test of section 1372(e)(5), I.R.C. 1954, W's fiscal year 1970 interest income is not netted against W's fiscal year 1970 rental…
1Opinion of the Court
ROSS R. SANBORN and CAROLINE C. SANBORN, ET AL., 1 Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Sanborn v. Commissioner
Docket Nos. 9236-75, 10102-75, 10103-75, 10104-75, 10105-75, 1277-78, 1278-78, 1279-78, 1280-78, 1281-78.
United States Tax Court
T.C. Memo 1983-579; 1983 Tax Ct. Memo LEXIS 209; 46 T.C.M. (CCH) 1435; T.C.M. (RIA) 83579;
September 20, 1983.
W and H entered into a transaction in December 1967 which, in form, was a sale from W to H and a leaseback from H to W. Petitioner-husbands were the shareholders of W, a subchapter S corporation.
Held: (1) The transaction is in…
2Cases cited41 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Burnet v. HarmelSupreme Court of the United States · 1932
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
- Crane v. CommissionerSupreme Court of the United States · 1947
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