B. T. Holder and Georgia L. Holder v. United States

BELL, Circuit Judge.

This is an appeal from an order of the district court granting the taxpayers a loss deduction under § 165 of the Internal Revenue Code of 1954. 26 U.S.C.A. § 165. Taxpayers entered into a lease with the Mead Corporation, pursuant to which the lessee had the right but not the obligation to demolish a building on the leased premises. The building was demolished and taxpayers sought to deduct the unrecovered cost basis of the demolished building. The deduction was disallowed, taxpayers paid the deficiency and filed a claim for refund of income taxes paid. The district court,…