Kissel v. Commissioner
United States Board of Tax Appeals
Where one owning a life interest in a piece of real property erects with her own funds a building thereon, the life of which extends far beyond the life expectancy of the life tenant, held, that she is entitled to deduct each year that portion of the cost which the taxable year bears to her total expectancy of life, as shown by the life tables.
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Where one owning a life interest in a piece of real property erects with her own funds a building thereon, the life of which extends far beyond the life expectancy of the life tenant, held, that she is entitled to deduct each year that portion of the cost which the taxable year bears to her total expectancy of life, as shown by the life tables. Held, further, that she is not entitled under these circumstances to an additional deduction representing exhaustion of the building over its own life.
1Opinion of the Court
*707OPINION.
Millikdn :
The question presented for our decision is not whether petitioner has the right to deduct each year from her gross income that proportion of the value of her life estate which the taxable year bears to her total expectancy of life, but whether she has the right to deduct such proportion of the amount which she invested in the new building out of her own funds. The following are the applicable provisions of the Revenue Act of 1921:
Sec. 214. (a) That in computing net income there shall be allowed as deductions :
⅜ * ⅜< * * * *(8) A reasonable allowance for the exhaustion, wear…
2Cases cited4 opinions
- United States v. MerriamSupreme Court of the United States · 1923
- Lynch v. Alworth-Stephens Co.Supreme Court of the United States · 1925
- Duffy v. Central R. Co. of NJSupreme Court of the United States · 1925
- Simpson v. United StatesSupreme Court of the United States · 1920
3Cited by5 opinions
- Grant v. United StatesDistrict Court, W.D. Virginia · 1962
- Brown v. CommissionerUnited States Board of Tax Appeals · 1932
- Kissel v. CommissionerUnited States Board of Tax Appeals · 1929
- Kuhn v. United StatesDistrict Court, S.D. Texas · 1975
- Penn v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1952