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Buy N Bye #7, Buy N Bye #12, Buy N Bye #13, Conoco Cmart #16, and
the office building located in Stillwater provide:
Lessee covenants and agrees to carry and maintain the
buildings, equipment, and improvements upon the said
premises in the same conditions as they now are and to
deliver the same to the Lessor upon the termination of
this lease in the same condition in which they are now,
normal and usual wear and tear alone expected. Lessee
may construct additions and improvements upon the
premises, which said additions and improvements are to
be maintained at Lessee’s expense to the termination of
the lease when they become property of the Lessor.
The lease agreement for Western Sizzlin’ PC provides:
REPAIRS. The LESSEE shall, at its own expense, make
all necessary repairs and replacements to the Leased
Premises * * * fixtures and all other appliances and
their appurtenant equipment * * *
ALTERATIONS AND IMPROVEMENTS. * * * All additions,
alterations and improvements made in or to the leased
premises by either the LESSOR or the LESSEE, shall
become property of the LESSOR and be surrendered with
the Leased Premises at the termination of the Lease.
* * *
Airplane Lease Activity
Petitioner purchased a new TBM 700, single engine, propeller
airplane in 1993. Petitioner leased the airplane to Shaw’s Gulf
during the years in issue. Petitioner signed the lease
agreement, as lessor, and as the president of Shaw’s Gulf, as
lessee. The lease agreement provided that “Shaw Gulf, Inc. shall
keep the airplane in good condition and shall make all repairs
necessary for its good operation at * * * [its] own expense” and
required monthly rental payments of $7,000. The lease agreement
also required Shaw’s Gulf to insure the airplane against loss.
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Last modified: May 25, 2011