Lockhart Leasing Co. v. Commissioner
United States Tax Court
Held, since the equipment and machinery which petitioner purchased for use of other persons was in substance as well as form owned by petitioner and leased to the persons for whom acquired, petitioner is entitled to the investment credit provided for under sec. 38, I.R.C. 1954, with respect to the equipment and machinery which had a useful life of over 4 years except in those instances where petitioner had agreed to the lessee's having the investment credit or had acquired…
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Held, since the equipment and machinery which petitioner purchased for use of other persons was in substance as well as form owned by petitioner and leased to the persons for whom acquired, petitioner is entitled to the investment credit provided for under sec. 38, I.R.C. 1954, with respect to the equipment and machinery which had a useful life of over 4 years except in those instances where petitioner had agreed to the lessee's having the investment credit or had acquired the property for a person who had previously used it.
1Opinion of the Court
OPINION
Petitioner takes the primary position that it is entitled to the invest-lent credit provided for in section 38 2 since section 48 (d) 3 of subpart B, referred to in section 38(a), specifically provides that a lessor may elect, -with respect to any new section 38 property, to treat the lessee as having acquired such property. Petitioner states that it is clear from the provisions of section 48(d) that the lessor is entitled to the investment credit pi’ovided by section 38 unless he has elected to treat the lessee as having acquired the property.
Respondent answers this argument of…
2Cases cited14 opinions
- Benton v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1952
- Bowen v. CommissionerUnited States Tax Court · 1949
- Breece Veneer and Panel Company v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1956
- Martin v. CommissionerUnited States Tax Court · 1965
- Karl R. Martin and Kathleen Martin v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1967
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3Cited by1 opinion
- Lockhart Leasing Co. v. CommissionerUnited States Tax Court · 1970