Plumb Trust v. Commissioner
United States Tax Court
During the period of a lease ended December 31, 1941, the taxpayer's lessees erected a building on the property. The taxpayer recovered possession immediately after expiration of the lease. The value of the building, held, not includible in the taxpayer's income for 1941, as recovery of possession fell in 1942.
1Opinion of the Court
OPINION.
Johnson, Judge:
The trust involved herein owned a half interest in real estate on which a tenant erected a building during the period of lease. The lease expired on December 31, 1941, and petitioner recovered possession. The parties are in agreement that the erection of the building increased the value of petitioner’s interest in the property by $8,000, and that under the doctrine of Helvering v. Bruun, 309 U. S. 461, the $8,000 is taxable as income of the petitioner for 1941 if realized in that year. The issue for decision is thus the year of realization, and that is fixed by the date…
2Cases cited3 opinions
- Helvering v. BruunSupreme Court of the United States · 1940
- Grace v. MichaudSupreme Court of Minnesota · 1892
- Hyman Realty Co. v. KahnSupreme Court of Minnesota · 1937
3Cited by1 opinion
- Plumb Trust v. CommissionerUnited States Tax Court · 1947