Eli T. Sleiman, Jr. and Janie L. Sleiman, et al. - Page 22

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          "reaffirmation", and that both loans were obtained from the same            
          lender.  However, the material terms of the two loans, such as              
          the interest rates, prepayment premiums, and repayment periods              
          are significantly different.  The requirement of an additional              
          commitment fee further convinces us that the permanent loan                 
          constituted a separate obligation on behalf of ME.  Moreover, the           
          fact that SouthTrust Bank was the lender of each loan is not                
          determinative of our decision.  See Buddy Schoellkopf Prods.,               
          Inc. v. Commissioner, 65 T.C. 640, 648-650 (1975).                          
               After examining the material terms contained in the loan               
          documents, in lieu of relying merely on their labels, we find               
          that the construction loan and the permanent loan are separate              
          loans.  We therefore hold that ME properly amortized its loan               
          commitment fee and attorney's fees over the 1-year period of its            
          construction loan.                                                          
          Taxes                                                                       
               The fourth issue for decision is whether REE and ME are                
          entitled to deductions pursuant to section 164(a) for certain               
          taxes incurred in connection with recording mortgages in the                
          State of Florida.                                                           
               REE and ME incurred the following amounts of intangible                
          personal property taxes and documentary stamp taxes during 1992:            
                              Intangible Personal      Documentary                    
               S Corporation     Property Tax          Stamp Tax                      
                    REE            $  900              $1,440                         
                    ME             3,000               4,800                          




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