Borland v. Commissioner
United States Board of Tax Appeals
1. The amount paid by petitioners in 1923 as consideration for the cancellation of a lease on property owned by them, held not a business expense deductible entirely from income for the year in which paid, but a capital expenditure, recoverable through deductions prorated over the unexpired term of the canceled lease contract. 2. Held, the cost of permanent partitions installed during 1923 in the Borland Building, which did not increase the value of the building as a whole,…
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1. The amount paid by petitioners in 1923 as consideration for the cancellation of a lease on property owned by them, held not a business expense deductible entirely from income for the year in which paid, but a capital expenditure, recoverable through deductions prorated over the unexpired term of the canceled lease contract. 2. Held, the cost of permanent partitions installed during 1923 in the Borland Building, which did not increase the value of the building as a whole, did not constitute an ordinary business expense deductible in its entirety from income of said year, but was a capital…
1Opinion of the Court
*542OPINION.
Trammell :
The first issue here, which is common to all three of the present consolidated cases, is whether the aggregate amount paid by the petitioners in 1923 to secure cancellation of the lease to the Chicago Surface Lines on a portion of the Borland Building constituted business expense deductible from gross income for that year, or whether the amount should be treated as a capital expenditure, to be returned through deductions prorated over the unexpired term of the canceled lease. Each of the petitioners deducted his or her proportionate part of the payment from 1923 income, and…
2Cited by6 opinions
- Commissioner of Internal Revenue v. Boylston Market Ass'nCourt of Appeals for the First Circuit · 1942
- Bell v. Harrison. Bell v. United StatesCourt of Appeals for the Seventh Circuit · 1954
- Boucher v. CommissionerUnited States Tax Court · 1981
- Wigmore Realty Co. v. United StatesDistrict Court, N.D. Ohio · 1952
- Borland v. CommissionerUnited States Board of Tax Appeals · 1933
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