Poly Holding Corp. v. Commissioner
United States Board of Tax Appeals
Petitioner acquired a lease of land having a term of 21 years and the privilege of renewal, and erected thereon a building at its expense, which the respondent determined had a useful life of 40 years, and allowed depreciation deductions at the rate of 2 1/2 percent per annum.
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Petitioner acquired a lease of land having a term of 21 years and the privilege of renewal, and erected thereon a building at its expense, which the respondent determined had a useful life of 40 years, and allowed depreciation deductions at the rate of 2 1/2 percent per annum. Held, following 353 Lexington Avenue Corp.,27 B.T.A. 762, that the respondent's determination must be sustained in the absence of evidence that the probable useful life of the building to petitioner was shorter than the period determined by the respondent.
1Dissent
Adams,
dissenting: I am unable to agree to the prevailing opinion in this proceeding. I think that this case is controlled by the doctrine laid down by the Circuit Court of Appeals for the Second Circuit in the case of Bonwit Teller & Co. v. Commissioner, 53 Fed. (2d) 381, which was followed by the Court of Claims in 719 Fifth Avenue Co. v. United States, 5 Fed. Supp. 909. In Bonwit Teller & Co. supra, the court said:
It was also error to extend beyond the term of the lease the period over which exhaustion of the leasehold is to be spread. The renewal privilege had not been exercised and may…
2Cases cited6 opinions
- Miller v. GearinCourt of Appeals for the Ninth Circuit · 1919
- Cryan v. WardellDistrict Court, N.D. California · 1920
- 353 Lexington Ave. Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- Hewitt Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Allen W. Hinkel Dry Goods Co. v. CommissionerUnited States Board of Tax Appeals · 1928
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