Penn v. Commissioner of Internal Revenue

THOMAS, Circuit Judge,

appeal from a decision of the Tax Court of the United States involves inCOme tax liability of the petitioner for the calendar years 1943 and 1944 in the respective amounts of $550.53 and $776.04.

The question presented is whether depreciation deductions on a building erected by a life tenant at her own expense are to be computed under § 23(1) of the Internal Revenue Code, 26 U.S.C.A. § 23(1), at a rate based upon the life expectancy of the life tenant, as the taxpayer contends, or on the useful life of the building, as the Tax Court held. 16 T.C. 1497.

The material facts…