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.
1Opinion of the Court
Ekman, Judge:
The Commissioner determined a deficiency of $7,577 in the petitioners’ Federal income tax for 1973. Due to concessions by the parties, the only issue for decision is whether the amounts paid as rent by Dr. May in 1973 to an irrevocable trust created by the petitioners for the benefit of their children constituted an ordinary and necessary business expense under section 162(a) of the Internal Revenue Code of 1954.1
FINDINGS OF FACT
Some of the facts have been stipulated, and those facts are so found.
The petitioners, Lewis H. V. and Nancy C. May, husband and wife, maintained their…
2Cases cited21 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- 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
- C. James Mathews v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1975
16 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- George B. Rosenfeld and Harriet Rosenfeld v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1983
- Drager v. CommissionerUnited States Tax Court · 1987
- Lewis H v. May and Nancy C. May v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1984
- Benson v. CommissionerUnited States Tax Court · 1983
- Evans v. United StatesDistrict Court, C.D. Illinois · 1983
7 more not listed; retrieve them via the Exa API.