Gates v. Commissioner
United States Board of Tax Appeals
1. Petitioner leased certain land for 99 years and, subject to such lease, sold the building situated thereon. Held, that under the terms of the instruments there was a lease of the land and building for 99 years for which petitioner received a bonus of $186,269.46. 2. Commissions paid by a lessor to secure a 99-year lease on property owned by him are capital expenditures, which must be amortized over the term of the lease. 3. Where a bonus for a 99-year lease is paid with…
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1. Petitioner leased certain land for 99 years and, subject to such lease, sold the building situated thereon. Held, that under the terms of the instruments there was a lease of the land and building for 99 years for which petitioner received a bonus of $186,269.46. 2. Commissions paid by a lessor to secure a 99-year lease on property owned by him are capital expenditures, which must be amortized over the term of the lease. 3. Where a bonus for a 99-year lease is paid with cash and promissory notes which were worth their face amount, it is held that the cash and notes constitute taxable…
1Opinion of the Court
MARVIN H. GATES, TRUSTEE, ESTATE OF JEMUEL C. GATES, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Gates v. Commissioner
Docket No. 46181.
United States Board of Tax Appeals
26 B.T.A. 998; 1932 BTA LEXIS 1207;
September 16, 1932, Promulgated
1. Petitioner leased certain land for 99 years and, subject to such lease, sold the building situated thereon. Held, that under the terms of the instruments there was a lease of the land and building for 99 years for which petitioner received a bonus of $186,269.46.
2. Commissions paid by a lessor to secure a 99-year lease on property owned by him…
2Cases cited15 opinions
- Lewis v. CurnuttSupreme Court of Iowa · 1906
- Central Bank Block Ass'n v. Commissioner of Int. Rev.Court of Appeals for the Fifth Circuit · 1932
- Jacobs v. All Persons, Etc.California Court of Appeal · 1909
- Bonwit Teller & Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Central Bank Block Ass'n v. CommissionerUnited States Board of Tax Appeals · 1930
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