Dana v. Commissioner
United States Board of Tax Appeals
1. The petitioner in 1927 leased certain property to a corporation for 20 years. Under the terms of this lease an existing lease between the parties at a lower rental was canceled and it was agreed that the old building on the leased property should be demolished and a new building erected by the lessor, title to the new building to vest immediately in the lessor.
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1. The petitioner in 1927 leased certain property to a corporation for 20 years. Under the terms of this lease an existing lease between the parties at a lower rental was canceled and it was agreed that the old building on the leased property should be demolished and a new building erected by the lessor, title to the new building to vest immediately in the lessor. The lessee agreed to bear a part of the cost of replacing the old building with a new building especially suited to its business. Held, no deductible loss was sustained by the petitioner on account of the demolition of the old…
1Opinion of the Court
*85OPINION.
Matthews:
With the exception of the fair market value of the new building, there is no controversy with respect to the material facts of this case, which are comparatively simple. The petitioner owned a building in the Boston suburb of Woburn, Massachusetts, which he leased in 1926 to the Eoss Stores, Inc., for 20 years. The lessee operated chain stores and desired to have a building which would conform to a certain type used by it for all its stores. After considering remodeling the petitioner’s old building at a cost of approximately $18,000, the lessee learned that a new building…
2Cases cited3 opinions
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Eysenbach v. CommissionerUnited States Board of Tax Appeals · 1928
- Spinks Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1930
3Cited by1 opinion
- Dana v. CommissionerUnited States Board of Tax Appeals · 1934