City Investing Co. v. Commissioner
United States Tax Court
Pursuant to a policy of liquidating its property holdings in Lower Manhattan, T corporation in 1950 transferred its fee simple interest in land under certain commercial property to Conn. corporation for $ 4 million. The fair market value of such land on the date of transfer was not in excess of $ 4 million.
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Pursuant to a policy of liquidating its property holdings in Lower Manhattan, T corporation in 1950 transferred its fee simple interest in land under certain commercial property to Conn. corporation for $ 4 million. The fair market value of such land on the date of transfer was not in excess of $ 4 million. Simultaneously, Conn. leased back the land to T for an original term of 21 years, subject to specified renewals, at an annual net rental of $ 180,000 which was at least equal to the fair annual net rental for the land at the time. Held that the sale of the land was bona fide and the loss…
1Opinion of the Court
OPINION.
Raum, Judge:
On November 9, 1950, Thirty purportedly conveyed a fee simple interest in the land at 30 and 38-40 Broad Street in New York City to Connecticut General Life Insurance Company for a cash consideration of $4 million. On the same day Connecticut leased back the same land to Thirty for an original term of 21 years for an annual net rental of $180,000. The true nature of these two transactions, which the parties agree were closely linked in form as well as in substance, is the issue to be decided.
Respondent has determined that Thirty’s formal sale' and immediate leaseback of…
2Cases cited4 opinions
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Century Electric Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1951
- Jordan Marsh Company v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1959
- May Dep't Stores Co. v. CommissionerUnited States Tax Court · 1951
3Cited by4 opinions
- Crowley, Milner & Co. v. CommissionerUnited States Tax Court · 1981
- City Investing Co. v. CommissionerUnited States Tax Court · 1962
- Crowley, Milner & Co. v. CommissionerUnited States Tax Court · 1981
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980