Van Zandt v. Commissioner
United States Tax Court
Petitioner, a physician, owned a building and certain equipment which he used in his medical practice. He created two 10-year irrevocable trusts under sec. 673, I.R.C. 1954, for the benefit of his son and daughter, naming himself as trustee. Petitioner then conveyed the real property by deed and transferred the equipment by bill of sale to the trusts.
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Petitioner, a physician, owned a building and certain equipment which he used in his medical practice. He created two 10-year irrevocable trusts under sec. 673, I.R.C. 1954, for the benefit of his son and daughter, naming himself as trustee. Petitioner then conveyed the real property by deed and transferred the equipment by bill of sale to the trusts. On the same day he, as trustee, leased the building and equipment back to himself for continued use in practicing his profession. He deducted the rental payments made to the trusts in 1958 and 1959. Held, that such rental payments are not…
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined deficiencies in the income tax of petitioners for the years 1958 and 1959 in the respective amounts of $1,698.57 and $2,679.95. The only issue presented is whether payments made during 1958 and 1959 by petitioner, I. L. Van Zandt, to two trusts as rental for a building and certain medical equipment, which he had previously transferred to the trusts and leased back for his use in the practice of medicine, are deductible as ordinary and necessary business expenses under the provisions of section 162(a) (3).1
All of the facts have been stipulated by the…
2Cases cited14 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. TowerSupreme Court of the United States · 1946
- Skemp v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1948
- Johnson v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1936
9 more not listed; retrieve them via the Exa API.
3Cited by31 opinions
- Furman v. CommissionerUnited States Tax Court · 1966
- Mathews v. CommissionerUnited States Tax Court · 1973
- Oakes v. Comm'rUnited States Tax Court · 1965
- Goodman v. CommissionerUnited States Tax Court · 1980
- Penn v. Comm'rUnited States Tax Court · 1968
26 more not listed; retrieve them via the Exa API.