Douglas Properties, Inc. v. Commissioner
United States Board of Tax Appeals
The petitioner acquired by assignment, at a cost of $110,000 with an agreement to pay a fixed rental, the unexpired terms of two leases on real property and thereafter during the same year conveyed the whole of the unexpired terms of the leases for a consideration of $50,000 and an increased annual rental. Held: (1) That the latter conveyances were not assignments or contracts of sale but created the relation of landlord and tenant between the parties thereto.
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The petitioner acquired by assignment, at a cost of $110,000 with an agreement to pay a fixed rental, the unexpired terms of two leases on real property and thereafter during the same year conveyed the whole of the unexpired terms of the leases for a consideration of $50,000 and an increased annual rental. Held: (1) That the latter conveyances were not assignments or contracts of sale but created the relation of landlord and tenant between the parties thereto. (2) That the amount received by petitioner on the execution of the instruments is taxable income and not a return of capital.
1Opinion of the Court
DOUGLAS PROPERTIES, INC., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Douglas Properties, Inc. v. Commissioner
Docket No. 40146.
United States Board of Tax Appeals
21 B.T.A. 347; 1930 BTA LEXIS 1866;
November 17, 1930, Promulgated
The petitioner acquired by assignment, at a cost of $110,000 with an agreement to pay a fixed rental, the unexpired terms of two leases on real property and thereafter during the same year conveyed the whole of the unexpired terms of the leases for a consideration of $50,000 and an increased annual rental. Held:(1) That the latter conveyances were not…
2Cases cited1 opinion
- Douglas Properties, Inc. v. CommissionerUnited States Board of Tax Appeals · 1930