- 12 - (1988); see also Narver v. Commissioner, 75 T.C. 53, 98 (1980), affd. 670 F.2d 855 (9th Cir. 1982). “In a number of cases, the Court has refused to permit the transfer of formal legal title to shift the incidence of taxation attributable to ownership of property where the transferor continues to retain significant control over the property transferred.” Frank Lyon Co. v. United States, 435 U.S. 561, 572-573 (1978). “‘[T]axation is not so much concerned with the refinements of title as it is with actual command over the property taxed’”. Grodt & McKay Realty, Inc. v. Commissioner, 77 T.C. 1221, 1236 (1981) (quoting Corliss v. Bowers, 281 U.S. 376, 378 (1930)); see also United States v. W.H. Cocke, 399 F.2d 433, 445 (5th Cir. 1968). Therefore, when a taxpayer never actually owns the property in question, the taxpayer is not allowed to claim deductions for depreciation. See Grodt & McKay Realty, Inc. v. Commissioner, supra at 1236- 1238; see also Schwartz v. Commissioner, T.C. Memo. 1994-320, affd. without published opinion 80 F.3d 558 (D.C. Cir. 1996). A taxpayer has received an interest in property that entitles the taxpayer to depreciation deductions only if the benefits and burdens of ownership with respect to the property have passed to the taxpayer. See Grodt & McKay Realty, Inc. v. Commissioner, supra at 1237-1238; see also Grant Creek Water Works, Ltd. v. Commissioner, supra at 326. Whether the benefits and burdens of ownership with respect to property have passed toPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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