TAXATION-FEDERAL INCOME TAX-PAYMENT TO LESSEE FOR SURRENDER OF LEASE TAXABLE AS CAPITAL GAIN

Authors

Theodore J. St. Antoine, University of Michigan Law SchoolFollow

Abstract

Taxpayer, a tenant in possession of premises under a lease, received a payment from the lessor to vacate and surrender the premises before the lease expired. The Tax Court decided that the payment was taxable only as a capital gain. On appeal, held, affirmed. Since the leasehold interest constituted property, its transfer by the lessee to the lessor was a sale of a capital asset under I.R.C., §117. Commissioner v. Golonsky, (3d Cir. 1952) 200 F. (2d) 72.

Recommended Citation

Theodore J. St. Antoine, TAXATION-FEDERAL INCOME TAX-PAYMENT TO LESSEE FOR SURRENDER OF LEASE TAXABLE AS CAPITAL GAIN, 51 Mich. L. Rev. 1101 (1953).
Available at: https://repository.law.umich.edu/mlr/vol51/iss7/19