Bonwit Teller & Co. v. Commissioner
United States Board of Tax Appeals
1. Probable useful life of stone buildings determined upon the evidence, for purpose of computing deduction for exhaustion and profit from sale to be not in excess of 10 years. 2. A brokerage fee, paid by a lessee holding under a long-term lease at a fixed annual rental to secure a subtenant from whom it receives a substantially larger rental, resulting in a regular annual gain throughout the term, is an investment of capital in a contract yielding income and not an ordinary…
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1. Probable useful life of stone buildings determined upon the evidence, for purpose of computing deduction for exhaustion and profit from sale to be not in excess of 10 years. 2. A brokerage fee, paid by a lessee holding under a long-term lease at a fixed annual rental to secure a subtenant from whom it receives a substantially larger rental, resulting in a regular annual gain throughout the term, is an investment of capital in a contract yielding income and not an ordinary and necessary expense of carrying on a trade or business, and hence may not be deducted from the income of the initial…
1Opinion of the Court
*1023OPINION.
SteRNhagen:
1. The petitioner formally pleads the bar of the statute of limitations, but counsel submits neither reason nor authority to support it, asking only that the facts be found. The deficiencies are not barred. Revenue Act 1924, sec. 277 (a) (1); Revenue Act 1926, sec. 277(a) (2).
2. The respondent, for each of the three years, reduced the deduction for exhaustion, wear and tear of furniture and fixtures. There is no evidence on the point, and hence no facts can be found and no error discovered. Respondent is sustained.
3. The evidence sufficiently establishes the reasonableness…
2Cases cited2 opinions
- American National Co. v. United StatesSupreme Court of the United States · 1927
- Duffy v. Central R. Co. of NJSupreme Court of the United States · 1925
3Cited by15 opinions
- Plainfield-Union Water Co. v. Comm'rUnited States Tax Court · 1962
- North American Coal Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- Willamette Indus. v. CommissionerUnited States Tax Court · 1995
- 550 Park Ave. Corp. v. CommissionerUnited States Board of Tax Appeals · 1930
- Aphessetche v. CommissionerUnited States Tax Court · 1968
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