Heller Trust v. Commissioner
United States Tax Court
Deduction -- Depreciation -- Exhaustion of Cost of Canceling a Lease. -- An amount paid by lessor for cancellation of a lease is in the nature of a capital expenditure to obtain possession during the unexpired term of the lease and is to be recovered through annual deductions for depreciation spread over the unexpired term of the canceled lease.
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined a deficiency of $26,119.22 in income tax for the calendar year 1941. The issues for decision are (a) whether the Commissioner erred in disallowing a part of a deduction of $56,000 paid by the petitioner in 1941 to a lessee to cancel a lease so that it could enter into a more desirable contract with the United States Government for a lease of the premises with an option to buy, and, (b) whether he erred in disallowing a part of a deduction of $4,800 paid by the petitioner in 1941 for services rendered in negotiating the above transactions. The…
2Cited by14 opinions
- Fry v. CommissionerUnited States Tax Court · 1958
- Risko v. CommissionerUnited States Tax Court · 1956
- Trustee Corp. v. CommissionerUnited States Tax Court · 1964
- Montgomery Co. v. CommissionerUnited States Tax Court · 1970
- Cosmopolitan Corp. v. CommissionerUnited States Tax Court · 1959
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