Carnegie Center Co. v. Commissioner
United States Tax Court
Deduction -- Depreciation -- Basis -- Basis of Buildings Does Not Include Separate Identifiable Cost of Acquiring Fee. -- The basis for depreciation of buildings includes no part of option prices paid for the underlying land by the petitioner which acquired the buildings at the same time by purchasing the stock of and merging into itself the corporations which owned the buildings and had long leases on the land.
1Opinion of the Court
OPINION.
MuRdock, Judge:
The Commissioner determined a deficiency of $2,304.64 in income tax for the petitioner’s first fiscal year beginning November 1, 1944, and ending October 31,1945. The petitioner does not contest any of the adjustments made by the Commissioner in determining the deficiency but contends that it is entitled to a refund based upon a larger deduction for depreciation on three buildings than was claimed on its return and increased by the Commissioner in determining the deficiency. The difference between the parties is whether the petitioner should use the basis used by its…
2Cases cited5 opinions
- Helvering v. SalvageSupreme Court of the United States · 1936
- Southwest Natural Gas Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- Peters v. CommissionerUnited States Tax Court · 1945
- Southwest Natural Gas Co. v. CommissionerUnited States Tax Court · 1950
- Collins v. CommissionerUnited States Tax Court · 1952
3Cited by5 opinions
- Riss v. CommissionerUnited States Tax Court · 1971
- Barbados 7 Ltd. v. CommmmissionerUnited States Tax Court · 1989
- Barbados 7 Ltd. v. CommmmissionerUnited States Tax Court · 1989
- Carnegie Center Co. v. CommissionerUnited States Tax Court · 1954
- Riss v. CommissionerUnited States Tax Court · 1971