Hardy v. Commissioner
United States Tax Court
Taxpayer paid loan fees associated with a purported $ 20 million loan. Taxpayer intended to use the loan proceeds to purchase large hotel properties. Held, the taxpayer's effort to become an owner of hotels constituted the start-up of a new business or a new income-producing activity.
Read the full summary
Taxpayer paid loan fees associated with a purported $ 20 million loan. Taxpayer intended to use the loan proceeds to purchase large hotel properties. Held, the taxpayer's effort to become an owner of hotels constituted the start-up of a new business or a new income-producing activity. Held, further: The loan fees are start-up or pre-opening expenses that are not deductible under either sec. 162 or sec. 212, I.R.C. 1954. Our opinions in Johnsen v. Commissioner, 83 T.C. 103 (1984), revd. 794 F.2d 1157 (6th Cir. 1986), and Hoopengarner v. Commissioner, 80 T.C. 538 (1983), affd. by unpublished…
1Opinion of the Court
SWIFT, Judge:
In a statutory notice of deficiency dated January 2, 1986, respondent determined a deficiency in petitioners’ 1982 income tax liability of $3,227. After concessions, the issue remaining for decision is whether petitioners are entitled to a deduction under sections 162 or 2121 for loan fees of $8,750.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
Petitioners, Arthur H. and Jeannine C. Hardy, are husband and wife. During the tax year in issue and at the time of filing of the petition, petitioners resided in Sandy, Utah. Jeannine C. Hardy is a petitioner in…
2Cases cited21 opinions
- Burnet v. Coronado Oil & Gas Co.Supreme Court of the United States · 1932
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Commissioner v. Idaho Power Co.Supreme Court of the United States · 1974
- Richmond Television Corporation v. United StatesCourt of Appeals for the Fourth Circuit · 1965
- Goodwin v. CommissionerUnited States Tax Court · 1980
16 more not listed; retrieve them via the Exa API.
3Cited by34 opinions
- Toth v. Comm'rUnited States Tax Court · 2007
- Koenig v. CommissionerUnited States Tax Court · 1998
- Powell v. Comm'rUnited States Tax Court · 2014
- Miller v. CommissionerUnited States Tax Court · 1991
- Alvi v. Comm'rUnited States Tax Court · 2010
29 more not listed; retrieve them via the Exa API.