Engle v. Talarico

In a certiorari proceeding by petitioner taxpayer to obtain an old age residential real property tax exemption, the city assessor appeals. The issue is whether “ income ” for purposes of qualifying for the exemption includes return of capital and whether deductions may be taken for capital losses and depreciation of income-producing real property.

The Supreme Court dismissed the petition. The Appellate Division unanimously reversed with an opinion, directing that the exemption be granted.

The Appellate Division order should be affirmed. Although petitioner was not entitled to a depreciation…