Business Real Estate Trust v. Commissioner
United States Board of Tax Appeals
Where sums are paid to procure the unexpired terms of leases held by tenants of buildings already owned in fee and other buildings acquired under 99-year leases and in fee, with the sole object in view of immediately demolishing the buildings to permit the erection of a new building for lease to a known tenant for a long term at a substantial rental, the amounts, under the circumstances, should be treated as a part of the cost of the new building and recovered ratably over…
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Where sums are paid to procure the unexpired terms of leases held by tenants of buildings already owned in fee and other buildings acquired under 99-year leases and in fee, with the sole object in view of immediately demolishing the buildings to permit the erection of a new building for lease to a known tenant for a long term at a substantial rental, the amounts, under the circumstances, should be treated as a part of the cost of the new building and recovered ratably over its life.
1Opinion of the Court
*193OPINION.
AeuNdell :
In 1910 petitioner was the owner of certain improved property located in the business section of Boston. Wm. Filene’s Sons Company was the operator of a large department store in the neighborhood and it was in the market for larger quarters. Negotiations were entered into between petitioner and Filene’s and a tentative accord arrived at to the effect that, if petitioner should be able to acquire sufficient property adjoining that then owned by it and would on such property erect a suitable building, Filene’s would enter into a long term lease for such property at a…
2Cited by11 opinions
- Houston Chronicle Publishing Company, Plaintiff-Appellee-Cross v. United States of America, Defendant-Appellant-CrossCourt of Appeals for the Fifth Circuit · 1973
- Commissioner of Internal Revenue v. Golonsky. Commissioner of Internal Revenue v. GoldCourt of Appeals for the Third Circuit · 1952
- Trustee Corp. v. CommissionerUnited States Tax Court · 1964
- Montgomery Co. v. CommissionerUnited States Tax Court · 1970
- Keiler v. United StatesDistrict Court, W.D. Kentucky · 1966
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