Rossell M. Hightower, Individually and as of the Estate of Robert B. Hightower, Deceased v. United States

This case presents the single legal issue of whether or not the taxpayers are entitled to a deductible loss for federal income tax purposes under § 165 of the Internal Revenue Code for the demolition of three buildings owned by them in 1964. The buildings were demolished by a tenant of the taxpayers under a 99-year lease, which permitted the tenant to destroy the buildings, but did not require their destruction. The lease did not require replacement of the buildings or any other compensation to the taxpayers for the destroyed buildings, the rent being the same before and after destruction. 1

Th…