Atterbury v. Commissioner
United States Board of Tax Appeals
A leasehold is property and its cost and increase in value prior to March 1, 1913, are properly capital. The owner of the leasehold is entitled to take deductions for exhaustion of such leasehold in the same manner as he would with any other exhaustible property.
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A leasehold is property and its cost and increase in value prior to March 1, 1913, are properly capital. The owner of the leasehold is entitled to take deductions for exhaustion of such leasehold in the same manner as he would with any other exhaustible property. Where the March 1, 1913, value of a leasehold is determined, and that value is used as the basis for computing gain on the sale of a lease, the taxpayer is entitled to take deductions for exhaustion on the same basis.
1Opinion of the Court
*171OPINION.
Graupner:
The taxpayer contends that he is entitled to relief in one of the following alternatives:(a) If the Commissioner is correct in computing the gain of $4,904.75 on the sale of the leasehold, then the taxpayer is entitled to take as deductions from income the same amount as is used by the Commissioner in computing said gain, for the several years involved; or(b) If the Commissioner is correct in holding that the taxpayer is entitled to deduct from his income an annual depreciation of only $1,779.20, based on the May 1, 1903, cost of the lease of $33,804.80, the total…
2Cited by15 opinions
- Fed. Home Loan Mortg. Corp. v. Comm'rUnited States Tax Court · 2003
- Lomas Santa Fe, Inc. v. CommissionerUnited States Tax Court · 1980
- Baker v. CommissionerUnited States Tax Court · 1962
- Royal Collieries Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Atterbury v. CommissionerUnited States Board of Tax Appeals · 1924
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