Penn v. Comm'r
United States Tax Court
T, a physician, constructed a medical building in 1960 to meet the needs of his practice of ophthalmology, which he and his wife owned as community property. The building was occupied solely by T and his employees. Thereafter, in 1961, T and his wife conveyed their interests therein to trusts for the benefit of their four minor children for a period of about 15 years.
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T, a physician, constructed a medical building in 1960 to meet the needs of his practice of ophthalmology, which he and his wife owned as community property. The building was occupied solely by T and his employees. Thereafter, in 1961, T and his wife conveyed their interests therein to trusts for the benefit of their four minor children for a period of about 15 years. T was named sole trustee of each of the trusts, and had the power, inter alia, to terminate any or all of the trusts after somewhat less than 11 years, and to sell, exchange, rent, repair, or encumber trust corpus, although he…
1Opinion of the Court
OPINION
Baum:, Judge:
Section 162(a) of the Internal Bevenue Code of 1954 allows as a deduction “all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including — * * * (3) rentals or other payments required to be made as a condition to the continued use or possession, for purposes of the trade or business, of property to which the taxpayer has not taken or is not taking title or in which he has no equity.” (Emphasis added.) Thus, a taxpayer who owns or has an “equity” in property used in his trade or business, though he is…
2Cases cited17 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Blair v. CommissionerSupreme Court of the United States · 1937
- Furman v. CommissionerUnited States Tax Court · 1966
- Irvine K. Furman and Lorena K. Furman v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1967
- Skemp v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1948
12 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Mathews v. CommissionerUnited States Tax Court · 1973
- C. P. And Helen Brooke v. United StatesCourt of Appeals for the Ninth Circuit · 1972
- May v. CommissionerUnited States Tax Court · 1981
- Wiles v. CommissionerUnited States Tax Court · 1972
- C. P. And Helen Brooke v. United StatesCourt of Appeals for the Ninth Circuit · 1972
9 more not listed; retrieve them via the Exa API.