Pennsylvania Co. for Ins. etc. v. Commissioner
United States Board of Tax Appeals
TAXABLE TRANSACTION - GROUND RENT. - Where the petitioner sold real estate in Pennsylvania for part cash and for the balance reserved a ground rent which the purchaser agreed to pay and extinguish on or before a fixed date, and which ground rent had a fair market value of the unpaid portion thereof, held that this constituted a taxable transaction in the year the indenture was made.
1Opinion of the Court
*702OPINION.
Black:
Briefly stated, it is contended by petitioner that, because of the peculiar nature of a Pennsylvania ground rent, the contract of sale herein did not become a closed transaction until the payment in full of the principal of the ground rent in 1927, and therefore was not taxable until then, while respondent contends that it was a closed transaction in 1925 and taxable then.
Mr. Justice Shiras, in the case of Wilson v. Iseminger, 185 U. S. 55, speaking of irredeemable ground rents under the laws of Pennsylvania, said:
It is defined to be a rent reserved to himself and his heirs by…
2Cases cited6 opinions
- Weiss v. WeinerSupreme Court of the United States · 1929
- Wilson v. IsemingerSupreme Court of the United States · 1902
- Harrison's EstateSupreme Court of Pennsylvania · 1907
- Stephens's AppealSupreme Court of Pennsylvania · 1844
- Mitchell v. SteinmetzSupreme Court of Pennsylvania · 1881
1 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Weish Homes, Inc. v. CommissionerUnited States Tax Court · 1959
- Pennsylvania Co. for Ins. etc. v. CommissionerUnited States Board of Tax Appeals · 1930
- Steele v. CommissionerUnited States Board of Tax Appeals · 1936
- Weish Homes, Inc. v. CommissionerUnited States Tax Court · 1959