Rose v. Commissioner
United States Tax Court
Ps purchased "Reproduction Masters" of Picasso originals from Jackie Fine Arts, in transactions that can be characterized as "generic tax shelters."
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Ps purchased "Reproduction Masters" of Picasso originals from Jackie Fine Arts, in transactions that can be characterized as "generic tax shelters." Held: 1. Applying an objective analysis, the transactions lacked economic substance apart from anticipated tax benefits, and Ps are not entitled to depreciation or miscellaneous deductions or investment tax credits on the property acquired. 2. Ps are entitled to deduct under sec. 163, I.R.C. 1954, as amended, interest actually paid on recourse debt incurred. Rice's Toyota World, Inc. v. Commissioner, 752 F.2d 89 (4th Cir. 1985), revg. on this…
1Opinion of the Court
COHEN, Judge:
Respondent determined deficiencies of $191,335 and $302,451.12 in petitioners’ Federal income taxes for 1979 and 1980, respectively. The issues for determination are (1) whether petitioners are entitled to depreciation and miscellaneous deductions and investment tax credit in relation to their purchase from Jackie Fine Arts of photographic transparencies of Picasso paintings and related production rights; (2) whether petitioners are entitled to deduct interest (a) accrued or (b) paid on partial recourse notes used in such purchase; and (3) whether petitioners are hable for…
2Cases cited69 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
64 more not listed; retrieve them via the Exa API.
3Cited by219 opinions
- Patin v. CommissionerUnited States Tax Court · 1987
- James L. Rose and Judy S. Rose v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1989
- Rybak v. CommissionerUnited States Tax Court · 1988
- Cherin v. CommissionerUnited States Tax Court · 1987
- McCrary v. CommissionerUnited States Tax Court · 1989
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