Bryant Trust v. Commissioner
United States Tax Court
The taxpayer trust acquired by devise in 1920 land and building subject to lease until 1967 under a contract which permitted the lessee, who had constructed the building at his own expense, to recover its cost, plus interest, by retention of the rentals due under the lease.
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The taxpayer trust acquired by devise in 1920 land and building subject to lease until 1967 under a contract which permitted the lessee, who had constructed the building at his own expense, to recover its cost, plus interest, by retention of the rentals due under the lease. The trust paid off the unreimbursed cost in 1932 and sold the property in 1941. (1) The value of the "property" at the time of acquisition by devise, which value was the trust's basis, held, to be the value of the leased land and building without diminution on account of contract provisions permitting the lessee's…
1Opinion of the Court
OPINION.
Johnson, Judge:
The petitioner trust assails the Commissioner’s determination of gain on its sale of the Security Building property in 1941, charging error (1) in the use of $162,531.89 as basis; (2) in ascribing to the building a 40-year life for computing the depreciation adjustment to basis, and (3) in the allocation of sale proceeds between land and building.(1) As the trust acquired the property by devise, its basis is, under section 113 (a) (5), Internal Revenue Code, “the fair market value of such property at the time of such acquisition,” which time was April 8, 1920, the date…
2Cases cited3 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Crooks v. HarrelsonSupreme Court of the United States · 1930
- Cleveland, Cincinnati, Chicago & St. Louis Railway Co. v. BackusSupreme Court of the United States · 1894
3Cited by7 opinions
- Bolger v. CommissionerUnited States Tax Court · 1973
- First Nat. Bank of Kansas City v. NeeCourt of Appeals for the First Circuit · 1951
- Bolger v. CommissionerUnited States Tax Court · 1973
- Bryant Trust v. CommissionerUnited States Tax Court · 1948
- Duffy v. CommissionerUnited States Tax Court · 1954
2 more not listed; retrieve them via the Exa API.