Hewitt Realty Co. v. Commissioner
United States Board of Tax Appeals
1. Where, under provisions of a lease for 21 years with three possible renewals for like terms, lessee erected a building of an agreed useful life of 40 years, title to which building, subject to the lease, passed to the lessor immediately on erection, respondent properly determined that the estimated depreciated value of the building at the date of expiration of the original term of the lease represented income to lessor and added an aliquot part to income for the taxable…
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1. Where, under provisions of a lease for 21 years with three possible renewals for like terms, lessee erected a building of an agreed useful life of 40 years, title to which building, subject to the lease, passed to the lessor immediately on erection, respondent properly determined that the estimated depreciated value of the building at the date of expiration of the original term of the lease represented income to lessor and added an aliquot part to income for the taxable year. 2. Where income to lessor arising from the erection by lessee of a building on the leased land is to be spread over…
1Opinion of the Court
OPINION.
Van Fossan :
The respondent determined a deficiency of $1,141.94 for the year 1931. The only error now urged is the inclusion in income of $10,312.89 representing a prorated part of the depreciated cost of a building erected by a lessee on land belonging to taxpayer-lessor.
The parties stipulated the facts substantially as follows:
The petitioner was at all times during the calendar year 1931 a corporation duly organized and existing under the laws of the State of New York, with its principal office at 50 Church Street, New York, New York.
Under date of May 1, 1929, the petitioner…
2Cases cited4 opinions
- Miller v. GearinCourt of Appeals for the Ninth Circuit · 1919
- Cryan v. WardellDistrict Court, N.D. California · 1920
- Bowman Hotel Corp. v. CommissionerUnited States Board of Tax Appeals · 1931
- Alexander v. CommissionerUnited States Board of Tax Appeals · 1928
3Cited by6 opinions
- Hilgenberg v. United StatesDistrict Court, D. Maryland · 1937
- Hart v. CommissionerUnited States Board of Tax Appeals · 1938
- Hewitt Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Poly Holding Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Poly Holding Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
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