Shahmoon v. Commissioner of Internal Revenue

AUGUSTUS N. HAND, Circuit Judge.

The petitioners are husband and wife residing in New Rochelle, New York. They filed their income tax return for 1944 claiming deduction for depreciation under Section 23(f) of the Internal Revenue Act, 26 U.S.C.A.

The husband had acquired vacant land at Dalny and Ward Roads in Shanghai, China, during the year 1924. About 198 buildings, shops, and houses were erected on the property in 1925. He also- acquired land and buildings in 1928 at Yates Road in Shanghai, China. He received rents from the properties prior to the Japanese invasion of Shanghai on December 8,…