Rowley United Pension Fund v. Commissioner
United States Tax Court
Petitioner, a tax-exempt organization, leased land to a company on Dec. 19, 1953. Pursuant to the lease, petitioner constructed a building on the land which was occupied by the company in November 1954. The 1953 lease included an option under which the company, after the expiration of the 10th lease year, could request that petitioner construct an addition to the original building. In 1964 petitioner at the company's request provided for construction of an addition.
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Petitioner, a tax-exempt organization, leased land to a company on Dec. 19, 1953. Pursuant to the lease, petitioner constructed a building on the land which was occupied by the company in November 1954. The 1953 lease included an option under which the company, after the expiration of the 10th lease year, could request that petitioner construct an addition to the original building. In 1964 petitioner at the company's request provided for construction of an addition. Held, the indebtedness incurred to construct the original building was exempt from treatment as business lease indebtedness…
1Opinion of the Court
Wilbur, Judge:
Respondent has determined a deficiency of $535,411.72 in petitioner’s Federal income tax for the taxable year ending August 31, 1970. Due to concessions by the parties the only issue remaining for decision is whether the petitioner received taxable rental income from property subject to business lease indebtedness during the taxable year in issue.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts, together with the exhibits attached thereto, are incorporated by reference.
The petitioner is a trust which at the time of filing the…
2Cases cited1 opinion
- Chamber of Commerce v. CommissionerUnited States Tax Court · 1961
3Cited by5 opinions
- Elliot Knitwear Profit Sharing Plan v. CommissionerCourt of Appeals for the Third Circuit · 1980
- Elliot Knitwear Profit Sharing Plan v. CommissionerUnited States Tax Court · 1979
- Elliot Knitwear Profit Sharing Plan v. CommissionerUnited States Tax Court · 1979
- Elliot Knitwear Profit Sharing Plan v. Commissioner Of Internal RevenueCourt of Appeals for the Third Circuit · 1980
- Rowley United Pension Fund v. CommissionerUnited States Tax Court · 1975