Sanders v. Commissioner
United States Tax Court
Petitioners formed a partnership to purchase real property on which to operate a landfill business. Pursuant to the contract of sale executed in 1973, the partnership could enter onto the property prior to closing to begin fill operations. For each truckload of fill dumped, the partnership was required to, and did, pay the sellers a $ 2 dump fee which was credited against the purchase price of the property.
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Petitioners formed a partnership to purchase real property on which to operate a landfill business. Pursuant to the contract of sale executed in 1973, the partnership could enter onto the property prior to closing to begin fill operations. For each truckload of fill dumped, the partnership was required to, and did, pay the sellers a $ 2 dump fee which was credited against the purchase price of the property. The partnership proceeded to settlement in 1977, at which time the value of the land had been substantially diminished as a result of the fill operation. Held: 1. The dump fees paid by the…
1Opinion of the Court
Forrester, Jvdge:
In these consolidated cases respondent has determined deficiencies m petitioners Federal income tax as follows:
Year Deficiency Docket Petitioner No.
H. Kendrick Sanders and Barbara F. Sanders . 9622-77 ■6© f-1 'co ÍO -Cl CO b-00 t“H
■i-1 ■p-i O 05 oí rH
F. Bruce Bach and
1,445 1,348 Beverly J. Bach . 9623-77 CO ^ t- l>a a rH rH
The sole issue for decision is the proper characterization of amounts paid by petitioners’ partnership for the right to dump fill dirt on property which the partnership had contracted to purchase, where such payments were credited against the purchase price…
2Cases cited7 opinions
- Weiss v. WeinerSupreme Court of the United States · 1929
- Walburga Oesterreich v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- Smith v. CommissionerUnited States Tax Court · 1968
- Fair v. CommissionerUnited States Tax Court · 1957
- Thompson v. CommissionerUnited States Tax Court · 1980
2 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Browning-Ferris Industries, Inc. v. CommissionerUnited States Tax Court · 1987
- Huber v. CommissionerUnited States Tax Court · 1984
- Sanders v. CommissionerUnited States Tax Court · 1980