Rubnitz v. Commissioner
United States Tax Court
Held, a 3 1/2-percent "loan fee" withheld by the lender from the principal amount of a 25-year "construction loan" may not be deducted by the borrower in 1970 when escrow closed (on Dec. 17, 1970) on such loan.
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Held, a 3 1/2-percent "loan fee" withheld by the lender from the principal amount of a 25-year "construction loan" may not be deducted by the borrower in 1970 when escrow closed (on Dec. 17, 1970) on such loan. Held, further, a 1-percent "commitment" or "standby" fee reflected in a check (dated Dec. 15, 1970) given by the borrower to the lender which was to be credited by the lender against the 3 1/2-percent loan fee, but which was in fact placed in a "suspense" account by the lender and returned to the borrower in early 1971, is similarly not deductible in 1970.
1Opinion of the Court
Raum, Judge:
The Commissioner determined deficiencies in petitioners’ income taxes as follows:
Petitioners Year Deficiencies
Alan A. Rubnitz and Riva M. Rubnitz.. 1970 $635.00
Robert R. Krandel and Ruth E. Krandel. 1970 1,039.00
Lelon C. Wichert and Kathy E. Wichert. 1970 717.00
Roy S. Aal and Syrill Aal. 1970 4,766.00
Frank E. Ritchey, Jr., and Betty R. Ritchey. 1970 4,428.00
Marco Goodman and Ruth M. Goodman. 1970 2,417.00
Sylvan Gross and Jacqueline Gross. 1970 1,424.50
Willard B. Ross and Maria Elena Ross. 1970 1,528.52
Ashland Investment Co., Inc. Sept. 30,1971 1,021.98
The principal issue is…
2Cases cited32 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Eckert v. BurnetSupreme Court of the United States · 1931
- Eli D. Goodstein v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Eli D. GoodsteinCourt of Appeals for the First Circuit · 1959
- Helvering v. PriceSupreme Court of the United States · 1940
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3Cited by56 opinions
- Crown v. CommissionerUnited States Tax Court · 1981
- Baird v. CommissionerUnited States Tax Court · 1977
- Beck v. Comm'rUnited States Tax Court · 1980
- Wilkerson v. CommissionerUnited States Tax Court · 1978
- Lay v. CommissionerUnited States Tax Court · 1977
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