Law Commons^™

Income Tax Aspects Of Gifts And Leasebacks Of Business Property In Trust, William W. Oliver

Articles by Maurer Faculty

Rental deductions for a grantor who transfers property used in his business into a short term trust and then leases it back have been at issue in three recent cases, with the deduction being denied in two of the three cases. Some of the concepts used by the courts in these cases are of doubtful help in analyzing the problems, and there is a need for further clarification before tax consequences can be predicted with a reasonable degree of assurance. There is a possibility that the income will be taxed to the trust, even though a deduction is denied the …