May v. Commissioner
United States Tax Court
H and W transferred their entire title and interest in real property used in H's medical practice to an irrevocable trust for the benefit of their children. The trust instrument appointed H and a friend as cotrustees. H leased the property from the trust without a written lease and made monthly payments as rent to the trust.
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H and W transferred their entire title and interest in real property used in H's medical practice to an irrevocable trust for the benefit of their children. The trust instrument appointed H and a friend as cotrustees. H leased the property from the trust without a written lease and made monthly payments as rent to the trust. Held, the payments by H were ordinary and necessary business expenses under sec. 162(a), I.R.C. 1954. Mathews v. Commissioner, 61 T.C. 12 (1973), revd. 520 F.2d 323 (5th Cir. 1975), cert. denied 424 U.S. 967 (1976), followed.
1Dissent
Wilbur, J,
dissenting: I respectfully dissent. This opinion will muddy waters clarified over a long period of time. Indeed, the Eighth Circuit recently noted that “the Tax Court has taken the lead in developing a consistent body of law in this area.” Quinlivan v. Commissioner, 599 F.2d 269, 273 (8th Cir. 1979), affg. a Memorandum Opinion of this Court, cert. denied 444 U.S. 996 (1979). The court specifically referred to the four criteria we articulated in Mathews v. Commissioner, 61 T.C. 12 (1973), revd. 520 F.2d 323 (5th Cir. 1975), cert. denied 424 U.S. 967 (1976). Only two of the…
2Cases cited12 opinions
- Skemp v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1948
- Brown v. Commissioner of Internal Revenue (Two Cases)Court of Appeals for the Third Circuit · 1950
- I. L. Van Zandt and Ruth B. Van Zandt v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1965
- Ingle Coal Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1949
- C. James Mathews v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1975
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