Greenwood Packing Plant v. Commissioner of Internal Revenue

SOPER, Circuit Judge.

The taxpayer, as lessor of a piece of land, profited by the erection of a building thereon by the lessee; and the question for decision is whether the gain was taxable as income in 1935, when the lease terminated and the lessor regained possession of the property, or in 1936 when the land and building were sold. The taxpayer contends that the income was received in 1935, although it was not included in the income tax return for that year; and that the cost basis of the property was its value in 1935 when the build*788ing was erected, and thát on this basis, there was no…