Case Brief Essay

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Case Brief Lindeman v. Commissioner, 60 T.C. 609 (1973) FACTS: Jack B. Lindeman and Katherine G. Lindeman are married couple and filed a joint return on their income tax. Jack has been employed as the general manager of Beach Club Hotel by Beach Hotel Corp. From 1959 through 1963, Jack and his families lived in a suite of four rooms in the Beach Club Hotel furnished without charge by his employer. Since 1964, they have moved to a house purchased by employer in lieu of suite in hotel. The house was near the hotel and Jack has to return to hotel frequently when there were management problems. Even though Jack has an office in hotel, he also has an office in home where he did planning work and entertained hotel guests. ISSUE: Whether residential quarters furnished by petitioner Jack B. Lindeman's employer were "on the business premises of his employer" so that the fair rental value of these quarters was excludable from his gross income for the years in controversy. HOLDING: The court held that petitioner is entitled to exclude the fair value of his living quarters from his gross income. LEGAL ANALYSIS: Code section 119 excludes from an employee's gross income the value of lodging furnished to him by his employer if three conditions are met: (1) The lodging is furnished for the convenience of the employer; (2) the employee is required to accept the lodging as a condition of his employment; and (3) the lodging is "on the business premises" of the employee SUMMARIZE THE TAXPAYER’S AND THE GOVERNMENT’S ARGUMENT The taxpayer holds the position that the lodging furnished petitioner is “on the business premises of his employer” according to the committee report and Internal Revenue Code 1954 sec119.The rationale is that the house in which he lives is an indispensable and inseparable part of the hotel plant, and it is within the
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