Dab v. Commissioner
United States Tax Court
Held: (1) A 99-year leasehold cannot be amortized or depreciated over the shorter estimated life of a building located on the leased property when acquired; (2) a 99-year lease with options to terminate at the end of 25, 50, and 75 years is not the equivalent of a lease for a 25-year original term with options to renew.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The first question presented is whether a leasehold for 99 years can be depreciated or amortized over 20 years, the estimated remaining life of a building contained thereon.
Petitioner was a partner in a group which acquired by assignment a leasehold on property at 360 Central Park West, Hew York City, on January 5,1949. During the years 1950 and 1951 the partnership depreciated the leasehold on the declining balance method over a period of 20 years — 20 years being an estimation of the remaining life of a building contained thereon.
The respondent computed and allowed…
2Cases cited3 opinions
- Weiss v. WeinerSupreme Court of the United States · 1929
- City Nat. Bank Bldg. Co. v. HelveringCourt of Appeals for the D.C. Circuit · 1938
- Read v. DingessCourt of Appeals for the Fourth Circuit · 1894
3Cited by8 opinions
- Westinghouse Broadcasting Co. v. CommissionerUnited States Tax Court · 1961
- Gulf Tel. Corp. v. CommissionerUnited States Tax Court · 1969
- David Dab and Rose Dab v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1958
- The 1220 Realty Company v. Commissioner of Internal Revenue, Wheeler-Annex Properties, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1963
- 1220 Realty Co. v. CommissionerUnited States Tax Court · 1962
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