Abstract
In Hilton v. Commissioner, the Tax Court disallowed deductions for depreciation and interest claimed by the taxpayers pursuant to a sale and leaseback transaction. The court held that the taxpayers, who had acquired their interests in the subject property through a complicated series of assignments, had not demonstrated sufficient economic substance, apart from income tax considerations, to justify the deductions. Although the effects of the Hilton decision are diminished somewhat because of its factual complexity, cautious practitioners should alter the structure of sale and leaseback transactions to comport with the requirements established in Hilton and its predecessors.
Recommended Citation
Ruga, Jonathan M.
(1981)
"Sales and Leasebacks as a
Tax Shelter: Hilton v.
Commissioner,"
Utah Law Review: Vol. 1981:
No.
4, Article 5.
Available at:
https://dc.law.utah.edu/ulr/vol1981/iss4/5