353 Lexington Ave. Corp. v. Commissioner
United States Board of Tax Appeals
Held, that the cost of a lease, the original term of which was for a period of 21 years, with an option to renew for three like additional periods, the rentals for the renewal periods to be based on an appraisal of the land, should be exhausted over the original term. Bonwit Teller & Co. v. Commissioner, 53 Fed.(2d) 381, followed.
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Held, that the cost of a lease, the original term of which was for a period of 21 years, with an option to renew for three like additional periods, the rentals for the renewal periods to be based on an appraisal of the land, should be exhausted over the original term. Bonwit Teller & Co. v. Commissioner, 53 Fed.(2d) 381, followed. Held, further, that respondent's allowance of depreciation deductions at the rate of 3 per cent per annum must be approved, in the absence of evidence of the useful life of the building erected by the lessee on the leased premises.
1Opinion of the Court
OPINION.
Aeundell:
Upon audit of the consolidated return filed by petitioner and its subsidary, Lexington Improvement and Development Corporation, for 1929, the respondent disallowed a deduction for net loss claimed to have been sustained in 1928, disallowed a portion of a deduction for depreciation, and allowed a deduction, which apparently had not been claimed by petitioner in the return filed, for exhaustion of leasehold. These adjustments resulted in a deficiency of $327.49.
From the stipulated facts, which we adopt by reference as our findings of fact, it appears that in 1924 petitioner’s…
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- 353 Lexington Ave. Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- Poly Holding Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
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