Tonningsen v. Commissioner of Internal Revenue

SAWTELLE, Circuit Judge.

December 31, 1923, petitioners, husband and wife, executed a 99-year lease of property owned by them in the city and county of San Francisco and gave to their lessees an option to purchase the demised property within a certain time. January 3, 1924, petitioners paid to the real estate brokers who negotiated the lease the sum of $21,333 as a commission, consisting of $10,000 cash and the right to remove from the demised premises a building of the then market value of $11,333. In their j.oint income tax return for the calendar year 1924, filed on the cash receipts and…