Rowan v. Commissioner
United States Tax Court
1. A taxpayer who inherited a one-third interest in property on which a building had been constructed by the lessee without cost to the lessor, under a 66-year lease was not entitled to a depreciation allowance on the building.
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1. A taxpayer who inherited a one-third interest in property on which a building had been constructed by the lessee without cost to the lessor, under a 66-year lease was not entitled to a depreciation allowance on the building. The term of the lease extended beyond the useful life of the building and since the taxpayer would not sustain any economic loss as the building wore out and could not sell his interest in the building apart from the land or the rentals, he has no statutory basis for a depreciation allowance. Commissioner v. Pearson, 188 F. 2d 72, and Commissioner v. Moore, 207 F. 2d…
1Opinion of the Court
OPINION.
BlacK, Judge:
The amount of petitioner’s income is not in dispute in this proceeding. The things which are in dispute relate to certain deductions claimed by petitioner on his return and which have been disallowed by the Commissioner in his determination of the deficiencies.
Issue 1.
We will address ourselves to the first issue which is raised by the pleadings.
In 1919, petitioner’s mother owned improved property which, for a net annual rental, she leased for 66 years and 10 months, a term expiring at the end of 1985. The lease required the lessee at his own cost to demolish the existing…
2Cases cited8 opinions
- Commissioner of Internal Revenue v. TreganowanCourt of Appeals for the Second Circuit · 1950
- Commissioner of Internal Revenue v. Moore. Moore v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1953
- Moore v. CommissionerUnited States Tax Court · 1950
- Reisinger v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1944
- Estate of Strauss v. CommissionerUnited States Tax Court · 1949
3 more not listed; retrieve them via the Exa API.
3Cited by34 opinions
- Lawrence v. CommissionerUnited States Tax Court · 1957
- Vaira v. CommissionerUnited States Tax Court · 1969
- Bolger v. CommissionerUnited States Tax Court · 1973
- Trinco Industries, Inc. v. CommissionerUnited States Tax Court · 1954
- Schubert v. CommissionerUnited States Tax Court · 1960
29 more not listed; retrieve them via the Exa API.