MCGRATH v. COMMISSIONER
United States Tax Court
In 1995, Ps leased (as lessee) retail space in a shopping center to operate a bakery. When Ps entered into the lease, the leased space was nothing more than a dirt floor enclosed by temporary walls; the leased space was not serviced by any utilities. The lease obligated Ps to make substantial permanent improvements to the leased space at their own expense.
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In 1995, Ps leased (as lessee) retail space in a shopping center to operate a bakery. When Ps entered into the lease, the leased space was nothing more than a dirt floor enclosed by temporary walls; the leased space was not serviced by any utilities. The lease obligated Ps to make substantial permanent improvements to the leased space at their own expense. Other than trade fixtures, the permanent improvements Ps made to the leased space became the property of the lessor upon installation. Ps did not make a sec. 179, I.R.C. 1986, election on their timely filed tax return for either 1995 or…
1Opinion of the Court
MICHAEL A. MCGRATH AND FRANCES Y. MCGRATH, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
MCGRATH v. COMMISSIONER
No. 126-99
United States Tax Court
T.C. Memo 2002-231; 2002 Tax Ct. Memo LEXIS 238; 84 T.C.M. (CCH) 238;
September 18, 2002, Filed
Decision will entered under for Respondent.
In 1995, Ps leased (as lessee) retail space in a shopping
center to operate a bakery. When Ps entered into the lease, the
leased space was nothing more than a dirt floor enclosed by
temporary walls; the leased space was not serviced by any
utilities. The lease obligated Ps to make substantial permanent
improv…
2Cases cited20 opinions
- Helvering v. F. & R. Lazarus & Co.Supreme Court of the United States · 1939
- Commissioner v. Idaho Power Co.Supreme Court of the United States · 1974
- Detroit Edison Co. v. CommissionerSupreme Court of the United States · 1943
- Foster v. Comm'rUnited States Tax Court · 1983
- Duffy v. Central R. Co. of NJSupreme Court of the United States · 1925
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3Cited by1 opinion
- Visin v. Comm'rUnited States Tax Court · 2003