Republic Plaza Props. Pshp. v. Commissioner
United States Tax Court
Company A (A) sold Company B (B) a 35-percent interest, and retained a 65-percent interest, in a commercial office building (building) that was subject to an existing loan (loan) made by Company C (Lender). A and B contributed their respective interests in the building to Partnership P (P) that was formed by A and B pursuant to a partnership agreement (partnership agreement), and P assumed the loan.
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Company A (A) sold Company B (B) a 35-percent interest, and retained a 65-percent interest, in a commercial office building (building) that was subject to an existing loan (loan) made by Company C (Lender). A and B contributed their respective interests in the building to Partnership P (P) that was formed by A and B pursuant to a partnership agreement (partnership agreement), and P assumed the loan. Pursuant to a lease, P leased A the building, which was approximately 29 percent vacant, for a term of 24 years and 11.5 months. Except for a small amount of space, A was not to occupy the…
1Opinion of the Court
Chiechi, Judge:
In the notice of final partnership administrative adjustment (fpaa), respondent determined adjustments to the Form 1065 (Federal partnership return) that Republic Plaza Properties Partnership (partnership) filed for 1988.
The issues remaining for decision are:(1) Is the 11.5-month period of zero rent at the beginning of the lease (lease agreement) of an office building by partnership to BCE Development Properties, Inc. (bce), a reasonable rent holiday described in section 467(b)(5)(C)? We hold that it is;(2) did the lease agreement provide that the amount of a letter of credit…
2Cases cited18 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Buffalo Tool & Die Mfg. Co. v. CommissionerUnited States Tax Court · 1980
- Seymour Silverman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1976
- Parker v. CommissionerUnited States Tax Court · 1986
- Chester D. Tripp, Chester D. Tripp, Surviving Spouse Etc. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1964
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