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under section 164 only by the person upon whom they are imposed.
Sec. 1.164-1(a), Income Tax Regs.; see Walsh-McGuire Co. v.
Commissioner, 97 F.2d 983, 985 (6th Cir. 1938), affg. an order of
this Court.
Petitioners do not contend that the real property taxes in
question were imposed upon them, that they owned the real
property against which the taxes were assessed, or that they
owned any equitable or beneficial interest in the real property
that might entitle them to a deduction under section 164. Cf.
Hord v. Commissioner, 95 F.2d 179 (6th Cir. 1938), revg. 33
B.T.A. 342 (1935); Estate of Movius v. Commissioner, 22 T.C. 391
(1954); Horsford v. Commissioner, 2 T.C. 826 (1943).
Petitioners’ ownership of Griffin California does not support a
conclusion that the property taxes were imposed on them. Such a
conclusion would require inappropriately disregarding Griffin
California as a separate corporate entity, see Planters’ Cotton
Oil Co. v. Hopkins, 286 U.S. 332 (1932), and disregarding, as
well, the fact that Griffin California owned only 60 percent of
the partnerships. Accordingly, petitioners are not entitled to
deduct the tax payments under section 164(a).
Ordinary and Necessary Business Expenses
Although nondeductible under section 164(a), the tax
payments may still be deductible under section 162 to the extent
that they represent ordinary and necessary expenses of
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