Nowland Realty Co. v. Commissioner
United States Board of Tax Appeals
1. Held that certain amounts constructively received as rental by the petitioner as lessor from its president as lessee pursuant to the terms of a written lease entered into between them constituted rent to the petitioner. 2. Upon the facts, the accounts of two businesses should not be consolidated.
1Opinion of the Court
*412OPINION.
TRammell:
The petitioner contends that the respondent erred in including in its gross income for each of the years 1924 and 1925 the amount of $7,000 constructively received by it as lessor from Schmidt as lessee to provide for the retirement of portions of its preferred stock.
The evidence indicates that it has been the custom in Indiana for a number of years to make practically all large loans on real estate in the form of a preferred stock issue instead of a bond issue secured by a mortgage. The reason for the custom as shown by the evidence is that the bonds are subject to property…
2Cited by6 opinions
- Proctor Shop, Inc. v. CommissionerUnited States Board of Tax Appeals · 1934
- Flambeau Public Service Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Nowland Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Proctor Shop, Inc. v. CommissionerUnited States Board of Tax Appeals · 1934
- Roessler & Hasslacher Chemical Co. v. CommissionerUnited States Board of Tax Appeals · 1932
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