Hart v. Commissioner
United States Board of Tax Appeals
Petitioner, with coowners, leased realty for a term of 20 years, 7 months, with options in the lessee to renew for second, third, and fourth terms of 21 years for each renewal term, without any increase in rent based upon any added value to the property due to the erection of a building.
Read the full summary
Petitioner, with coowners, leased realty for a term of 20 years, 7 months, with options in the lessee to renew for second, third, and fourth terms of 21 years for each renewal term, without any increase in rent based upon any added value to the property due to the erection of a building. The original term ran from October 1, 1923, to April 30, 1944. In April 1925 a sublessee completed constructions of a building on the leased premises at a cost of $485,455 and this building then became the property of the lessors. The building had an estimated life of 30 years to April 1955. For the taxable…
1Opinion of the Court
*362OPINION.
HaRron:
The sole question is whether petitioner realized income in the years 1931 and 1932 as the result of the construction of a building by a sublessee on leased premises of which the petitioner was a part owner. The building was completed in April 1925 and has an estimated useful life of 30 years to April 1955. The original lease of the premises on which the building was constructed was for a term of 20 years, I months, to April 30, 1944. The lessees had options to renew the lease for three successive terms of 21 years thereafter.
The Commissioner has prescribed alternative methods…
2Cited by2 opinions
- Cleveland Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1939
- Hart v. CommissionerUnited States Board of Tax Appeals · 1938