Evans v. Commissioner
United States Board of Tax Appeals
1. Where a 99-year lease upon which a building had been erected by the lessee was forfeited and the property repossessed by the lessor in the taxable year, held, the added value to the property at the time of forfeiture of improvements erected thereon at the cost of the lessee, is income to the lessor.
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1. Where a 99-year lease upon which a building had been erected by the lessee was forfeited and the property repossessed by the lessor in the taxable year, held, the added value to the property at the time of forfeiture of improvements erected thereon at the cost of the lessee, is income to the lessor. Helvering v. Bruun,309 U.S. 461; held, further, that under the facts the building so erected did not increase the value of the property. 2. Attorney fees and expenditures occasioned by the forfeiture of a lease, held, deductible. 3. Personal state income taxes and state, county, and city…
1Opinion of the Court
*251OPINION.
Kern :
The respondent determined that each of the petitioners received taxable gain in the amount of $37,500 upon the forfeiture and cancellation of the lease May 12,1936. This gain is attributable to the value of the improvements placed upon the property by the lessee and taken over by the lessor upon cancellation of the lease. In their second amended petitions the petitioners each claim this determination to be in error to the extent of $36,914.
The question of whether the lessor realizes taxable gain to the extent of the added value to the property upon the forfeiture of a long term…
2Cases cited1 opinion
- Helvering v. BruunSupreme Court of the United States · 1940
3Cited by8 opinions
- Tucker v. CommissionerUnited States Tax Court · 1950
- Wigmore Realty Co. v. United StatesDistrict Court, N.D. Ohio · 1952
- Brant v. CommissionerUnited States Board of Tax Appeals · 1941
- Estate of Markham v. CommissionerUnited States Tax Court · 1943
- Evans v. CommissionerUnited States Board of Tax Appeals · 1940
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