Bonwit Teller, Inc. v. Commissioner

AUGUSTUS N. HAND, Circuit Judge.

In April, 1930, a company, of which the petitioner is the successor, and which will be called the “old company,” leased from the owner, premises 721 Fifth Avenue, New York City, with its improvements, at $475,000 per year. The lease was from May 1, 1930, to July 31, 1951. In 1931 the old company made improvements costing $618,964.64 in the building on the demised premises. These improvements were not removable, had an estimated useful life of twenty years, and the depreciation was deducted in its income tax returns at the rate of 5 per cent per annum down to…