Arevalo v. Comm'r
United States Tax Court
P entered into a contract with American Telecommunications Co., Inc. (ATC). Under the terms of the contract, P paid $ 10,000 to ATC and ATC provided P with legal title to two pay telephones (pay phones). P also entered into a service agreement with Alpha Telcom, Inc. (Alpha Telcom), the parent company of ATC, under which Alpha Telcom serviced the pay phones and retained most of the profits. 1. Held: Because P did not have the benefits and burdens of ownership with respect to…
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P entered into a contract with American Telecommunications Co., Inc. (ATC). Under the terms of the contract, P paid $ 10,000 to ATC and ATC provided P with legal title to two pay telephones (pay phones). P also entered into a service agreement with Alpha Telcom, Inc. (Alpha Telcom), the parent company of ATC, under which Alpha Telcom serviced the pay phones and retained most of the profits. 1. Held: Because P did not have the benefits and burdens of ownership with respect to the pay phones, P did not have a depreciable interest in the pay phones. Therefore, P is not entitled to claim a…
1Opinion of the Court
OPINION
Cohen, Judge:
Respondent determined a deficiency of $1,999 in petitioner’s Federal income tax for 2001 that was attributable to respondent’s disallowance of depreciation deductions and tax credits claimed by petitioner with respect to two public pay telephones (pay phones). In an amendment to answer, respondent asserted an increased deficiency of $30,247 and a penalty of $6,049 under section 6662 as a result of petitioner’s failure to report income from dividends and stock sales. After concessions by the parties, the issues for decision are:(1) Whether petitioner is entitled to claim a…
2Cases cited14 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Smith v. United StatesSupreme Court of the United States · 1993
- Corliss v. BowersSupreme Court of the United States · 1930
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
- United States v. CaliforniaSupreme Court of the United States · 1936
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3Cited by19 opinions
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- Daniel A. Crooks v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 2006
- Galyen v. Comm'rUnited States Tax Court · 2006
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