Michaelis v. Commissioner
United States Tax Court
Petitioner and her husband (Elo) held land as community property which they leased to a third party for 10 years. At the same time they granted an option to purchase such land, exercisable on the termination of the lease. Elo thereafter died and his community half of said lease and option (but not the land itself) were included in his Federal estate tax return and there valued and taxed.
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Petitioner and her husband (Elo) held land as community property which they leased to a third party for 10 years. At the same time they granted an option to purchase such land, exercisable on the termination of the lease. Elo thereafter died and his community half of said lease and option (but not the land itself) were included in his Federal estate tax return and there valued and taxed. Petitioner thus acquired a basis for Elo's half of the lease which she now seeks to amortize over the remainder of its term. Held: Basis and depreciable interest are not synonymous terms, and absent any…
1Opinion of the Court
OPINION
Petitioner seeks to amortize, under section 167,3 her interest in a lease received from her husband upon his death. She argues that by virtue of section 10144 she obtained a basis in the lease which may be amortized. Respondent, on the other hand, argues that section 1014 does not give petitioner a depreciable basis for purposes of section 167 but rather a valuation for the purpose of ascertaining gain or loss in the event of a future sale of the lease. He further contends that the lease in the instant case is not the type of depreciable asset to which section 167 applies, i.e., that…
2Cases cited8 opinions
- Detroit Edison Co. v. CommissionerSupreme Court of the United States · 1943
- Commissioner of Internal Revenue v. Moore. Moore v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1953
- Rowan v. CommissionerUnited States Tax Court · 1954
- Moore v. CommissionerUnited States Tax Court · 1950
- Peters v. CommissionerUnited States Tax Court · 1945
3 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Bolger v. CommissionerUnited States Tax Court · 1973
- Koch v. CommissionerUnited States Tax Court · 1978
- Bolger v. CommissionerUnited States Tax Court · 1973
- Koch v. CommissionerUnited States Tax Court · 1978
- May v. CommissionerUnited States Tax Court · 1972
1 more not listed; retrieve them via the Exa API.