Procacci v. Comm'r
United States Tax Court
Ps were partners of M, which purchased a golf course and leased it to C, a corporation controlled by M's partners. Due to the fact that C's operating expenses payable to unrelated third parties exhausted its funds, C paid no rent to M. Respondent allocated rent from C to M under sec. 482, I.R.C., and issued corresponding notices of deficiency to Ps.
Read the full summary
Ps were partners of M, which purchased a golf course and leased it to C, a corporation controlled by M's partners. Due to the fact that C's operating expenses payable to unrelated third parties exhausted its funds, C paid no rent to M. Respondent allocated rent from C to M under sec. 482, I.R.C., and issued corresponding notices of deficiency to Ps. Held, the amount of rent, if any, properly allocable to M under sec. 482 is essentially a factual issue, and there are no per se rules or bright-line tests for the determination. Held, further, an unrelated lessee dealing at arm's length would…
1Opinion of the Court
Joseph Procacci and Teresa Procacci, et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Procacci v. Comm'r
Docket Nos. 5170-82, 5787-82, 4538-84
United States Tax Court
94 T.C. 397; 1990 U.S. Tax Ct. LEXIS 24; 94 T.C. No. 24;
March 13, 1990March 13, 1990, Filed
Decisions will be entered for the petitioners.
Ps were partners of M, which purchased a golf course and leased it to C, a corporation controlled by M's partners. Due to the fact that C's operating expenses payable to unrelated third parties exhausted its funds, C paid no rent to M. Respondent allocated rent from C to M…
2Cases cited16 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- Freytag v. CommissionerUnited States Tax Court · 1987
- Parker v. CommissionerUnited States Tax Court · 1986
- Achiro v. CommissionerUnited States Tax Court · 1981
- Ach v. CommissionerUnited States Tax Court · 1964
11 more not listed; retrieve them via the Exa API.