Fegan v. Commissioner
United States Tax Court
Petitioner constructed, equipped, and furnished a motel property which he rented equipped and furnished to a corporation the stock of which was owned 76 percent by petitioner and 24 percent by his sons.
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Petitioner constructed, equipped, and furnished a motel property which he rented equipped and furnished to a corporation the stock of which was owned 76 percent by petitioner and 24 percent by his sons. The motel operation began in early August 1971. An oral lease agreement between petitioner and the corporation was reached in late August or early September 1971 and reduced to writing Dec. 1, 1971. Under the agreement, rental was fixed in a minimum amount less than the allowable depreciation on the motel properties with a further amount based on a percentage of revenues which were not…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioner’s income tax for the taxable years 1970,1971,1972, and 1973 in the amounts of $4,643, $29,247, $32,852, and $4,284, respectively-
The issues for decision are:(1) Whether under section 482, I.R.C. 1954,1 respondent properly allocated to petitioner for each of the years 1971,1972, and 1973 additional rental income from a motel facility owned by petitioner and rented by him to a corporation the stock of which was owned 76 percent by him and 24 percent by his two sons.(2) Whether respondent properly disallowed investment credits claimed…
2Cases cited19 opinions
- Metcalf & Eddy v. MitchellSupreme Court of the United States · 1926
- Helvering v. Wilshire Oil Co.Supreme Court of the United States · 1939
- Ach v. CommissionerUnited States Tax Court · 1964
- Hazard v. CommissionerUnited States Tax Court · 1946
- Rubin v. CommissionerUnited States Tax Court · 1971
14 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Curphey v. CommissionerUnited States Tax Court · 1980
- Miller v. CommissionerUnited States Tax Court · 1985
- Balsamo v. CommissionerUnited States Tax Court · 1987
- Ohio County & Independent Agriculture Societies v. CommissionerUnited States Tax Court · 1982
- Aladdin Industries, Inc. v. CommissionerUnited States Tax Court · 1981
7 more not listed; retrieve them via the Exa API.