Lewis v. Pope Estate Co.

HANEY, Circuit Judge.

This action to recover income taxes paid, involves the question as to when a lessor derives income in the case where the lessee places improvements on the leased land and the lease is terminated for default of the lessee.

Appellee, a California corporation, hereafter called the lessor, was the owner of a parcel of real property in San Francisco on March 18, 1909, and on that date executed a lease covering such property to Terminal Investment Company, a corporation, hereafter called the lessee, for a term of fifty years from February 1, 1909, at a stipulated rental. By the…