Alexander v. Commissioner
United States Board of Tax Appeals
1. The petitioners leased certain real estate which they owned for a period of 20 years, and the lessees, pursuant to a convenant in the lease, erected a building thereon at their own expense.
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1. The petitioners leased certain real estate which they owned for a period of 20 years, and the lessees, pursuant to a convenant in the lease, erected a building thereon at their own expense. Erection of said building was begun in 1920 and completed in 1921. Held, that petitioners realized income for the taxable years in question due to the erection of these improvements. 2. For failure of the petitioner to adduce sufficient evidence to overcome the prima facie correctness of the rate of depreciation used by the respondent in arriving at the depreciated value of the improvements aforesaid,…
1Opinion of the Court
*1171OPINION.
MoRRis:
The petitioners contend that inasmuch as they kept their books and made their returns on a cash receipts and disbursements basis, they realized no income during the years in question by reason of the construction of said building, because title did not pass to them, according to the terms of the lease, either at the time said building was completed in 1921 or at any time during the taxable *1172years in question. They rely strongly upon article 15 of the lease as indicating- that title to the improvements was not to pass to the petitioners until the termination of the lease. They…
2Cases cited4 opinions
- Miller v. GearinCourt of Appeals for the Ninth Circuit · 1919
- Cryan v. WardellDistrict Court, N.D. California · 1920
- Bass v. Metropolitan West Side El. R.Court of Appeals for the Seventh Circuit · 1897
- City of Oakland v. Albers Bros. Milling Co.California Court of Appeal · 1919
3Cited by6 opinions
- Hewitt Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Hilgenberg v. United StatesDistrict Court, D. Maryland · 1937
- Alexander v. CommissionerUnited States Board of Tax Appeals · 1928
- Slack v. CommissionerUnited States Board of Tax Appeals · 1937
- Sloan v. CommissionerUnited States Board of Tax Appeals · 1937
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