Phipps Estates v. Commissioner

OPINION.

Disnet, Judge:

The petitioner relies primarily upon Commissioner v. Appleby, 123 Fed. (2d) 700, affirming 41 B.T.A. 18, to sustain its contention that it may include in its basis for computing depreciation upon certain buildings its adjusted basis in buildings demolished for the purpose of erecting the new structures. The respondent, in substance, contends that the deduction sought by petitioner was properly denied, because there was at the time of purchase of the buildings no intent to demolish them and rebuild; that in such case loss must be claimed in the year of demolition; and…