Ft. Walton Square, Inc. v. Commissioner
United States Tax Court
1. Held, the useful life of concrete brick buildings at a shopping center was determined to be 30 years. Held, further, that the lessor and the lessee were not "related persons" within the meaning of sec. 178(b) and the cost of the buildings could be amortized over the term of petitioner's lease. 2. Held, the useful lives of other equipment and improvements at the shopping center were determined. 3. Held, the heating and air-conditioning systems serving the stores in the…
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1. Held, the useful life of concrete brick buildings at a shopping center was determined to be 30 years. Held, further, that the lessor and the lessee were not "related persons" within the meaning of sec. 178(b) and the cost of the buildings could be amortized over the term of petitioner's lease. 2. Held, the useful lives of other equipment and improvements at the shopping center were determined. 3. Held, the heating and air-conditioning systems serving the stores in the shopping center did not qualify as "section 38 property" with respect to which petitioner was entitled to an investment tax…
1Opinion of the Court
OPINION
Issue 1. Defreciation of Buildings
The buildings at Fort Walton Square shopping center were constructed of concrete block. Petitioner presented the testimony of its architect, who stated that the maximum life of a concrete hollow brick building was 20 to 25 years, as distinguished from a brick masonry building which might have a physical life of 50 to. 60 years. The witness predicated his estimate on the effect of changes in temperature and atmospheric conditions due to the porosity of the concrete brick. The witness could not by experience, however, relate such testimony specifically…
2Cases cited2 opinions
- James v. United StatesSupreme Court of the United States · 1961
- Shelden Land Co. v. CommissionerUnited States Board of Tax Appeals · 1940
3Cited by20 opinions
- Piggly Wiggly Southern, Inc. v. CommissionerUnited States Tax Court · 1985
- Central Citrus Co. v. CommissionerUnited States Tax Court · 1972
- The Kramertown Company, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1974
- Illinois Cereal Mills, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1986
- Samis v. CommissionerUnited States Tax Court · 1981
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