Peaden v. Commissioner
United States Tax Court
C, P's wholly owned S corporation, leased trucks under master lease agreements (master leases). For each truck, C and the lessor agreed to a base rent dependent on the lessor's cost of the truck.
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C, P's wholly owned S corporation, leased trucks under master lease agreements (master leases). For each truck, C and the lessor agreed to a base rent dependent on the lessor's cost of the truck. The master leases contain a terminal rental adjustment clause (TRAC), as defined in sec. 7701(h)(3), I.R.C., providing that the lessor, at the conclusion of the lease term, must sell the truck and remit to C any sale proceeds that exceed the remaining base rent plus the lessor's cost of arranging the sale. R does not argue that the lease agreements are not "qualified motor vehicle operating…
1Opinion of the Court
Wells, Judge:
Respondent determined a deficiency in petitioners’ 1993 Federal income taxes of $977,267 and a section 6662 accuracy-related penalty of $195,453.
Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.
The issues we must decide in the instant case are: (1) Whether section 7701(h)(1) precludes consideration of a “terminal rental adjustment clause” (TRAC)1 contained in certain agreements covering transactions entered into by Country-Fed Meat Co.,…
2Cases cited12 opinions
- United States v. Ron Pair Enterprises, Inc.Supreme Court of the United States · 1989
- Griffin v. Oceanic Contractors, Inc.Supreme Court of the United States · 1982
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
- Hanover Bank v. CommissionerSupreme Court of the United States · 1962
- Gefen v. CommissionerUnited States Tax Court · 1986
7 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Fortunato J. Mendes v. CommissionerUnited States Tax Court · 2003
- Francisco v. Comm'rUnited States Tax Court · 2002
- Francisco v. Comm'rUnited States Tax Court · 2002
- Harry E. Peaden, Jr. v. CommissionerUnited States Tax Court · 1999
- John A. Francisco v. CommissionerUnited States Tax Court · 2002
3 more not listed; retrieve them via the Exa API.