Boos v. Commissioner
United States Board of Tax Appeals
Petitioner acquired a 99-year lease, with option to purchase, in 1927 at a cost of $25,000. In 1928 he acquired the remainder interest.
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Petitioner acquired a 99-year lease, with option to purchase, in 1927 at a cost of $25,000. In 1928 he acquired the remainder interest. In his 1927 return petitioner deducted as amortization of the amount so paid $252.53. He now claims the right to deduct as a loss in 1928 the difference between the cost of the leasehold and the amortization deducted in 1927. Held, the cost of the lease was a capital expenditure, and when the leasehold became merged in the fee, the cost of the property to him became the sum of the unamortized cost of the leasehold plus the amount expended to acquire the…
1Opinion of the Court
OPINION.
Marquette:
The respondent has determined a deficiency herein for the year 1928 of $2,053.47, resulting from his disallowance of a deduction from gross income claimed by petitioner in the amount of $24,747.47, representing the unamortized cost of a leasehold. The proceeding was submitted upon a stipulation of facts and certain exhibits which were made a part thereof.
The petitioner is a resident of Los Angeles, California. On October 25, 1927, petitioner acquired.a 99-year lease, commencing November 1, 1927, on certain real property situated in the city of Los Angeles and known as the…
2Cases cited5 opinions
- Baton Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- King Amusement Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Fell v. CommissionerUnited States Board of Tax Appeals · 1927
- Rowe v. CommissionerUnited States Board of Tax Appeals · 1930
- Huey v. CommissionerUnited States Board of Tax Appeals · 1926
3Cited by8 opinions
- Bell v. Harrison. Bell v. United StatesCourt of Appeals for the Seventh Circuit · 1954
- Friend v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1941
- Molbreak v. CommissionerUnited States Tax Court · 1973
- Millinery Center Building Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1955
- W. D. Haden Co. v. CommissionerUnited States Tax Court · 1946
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