Fairfield Plaza, Inc. v. Commissioner
United States Tax Court
Petitioner purchased a 10-acre tract. It intended to develop a shopping center and rent the stores. In 1957, financial considerations necessitated sale of approximately 30 percent of the tract. A second parcel of about 30 percent was sold in 1958. The remaining parcel lies between the other two and is accessible by reason of easements across the two parcels which were sold. The contracts of sale obligated petitioner to pave and light any retained portions.
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Petitioner purchased a 10-acre tract. It intended to develop a shopping center and rent the stores. In 1957, financial considerations necessitated sale of approximately 30 percent of the tract. A second parcel of about 30 percent was sold in 1958. The remaining parcel lies between the other two and is accessible by reason of easements across the two parcels which were sold. The contracts of sale obligated petitioner to pave and light any retained portions. Held: (1) Basis of the entire tract apportioned to determine the respective bases of the parcels which were sold. (2) No part of the costs…
1Opinion of the Court
BRUCE, Judge:
Respondent determined deficiencies in income taxes of the petitioner for the years 1957 and 1958 in the amounts of $413.74 and $17,669.70, respectively.
We are called upon to determine (1) the proper allocation of the basis of a single tract of real estate to two portions of that tract, one of which was sold in 1957, the other in 1958, and (2) whether any part of an amount of $50,000 placed in escrow for improvements to the retained center portion, or the $40,146.32 actually expended for such improvements, is allocable to the basis of the parcel sold in 1957 or to the basis of…
2Cases cited7 opinions
- Colony, Inc. v. CommissionerSupreme Court of the United States · 1958
- Colony, Inc. v. CommissionerUnited States Tax Court · 1956
- The Colony, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1957
- Ayling v. CommissionerUnited States Tax Court · 1959
- Cleveland-Sandusky Brewing Corp. v. CommissionerUnited States Tax Court · 1958
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3Cited by16 opinions
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- Soelling v. CommissionerUnited States Tax Court · 1978
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