Giumarra Bros. Fruit Co. v. Commissioner
United States Tax Court
Petitioner paid $ 40,000 to acquire right to lease additional space under a lease which had a remaining 17 months of the original term with option to renew for an additional year. Held, sec. 178(a), I.R.C. 1954, governs the amount of amortization deduction to which petitioner is entitled, and under that section the $ 40,000 is amortizable over the period of the remaining term of the lease plus the option period.
1Opinion of the Court
Scott, Judge;
Respondent determined a deficiency in petitioner’s income tax for its taxable year ending April 30, 1967, in the amount of $8,100.
The only issue for decision is whether petitioner is entitled to amortize $40,000 paid in connection with obtaining additional space under a supplement to a lease over the stated term of the lease and option to renew, or whether the payment was in substance made for an intangible asset with no determinable useful life.
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
Petitioner is a corporation organized under the laws of…
2Cases cited1 opinion
- Morris v. CommissionerUnited States Tax Court · 1962
3Cited by5 opinions
- Lemmen v. CommissionerUnited States Tax Court · 1981
- Levenson & Klein, Inc. v. CommissionerUnited States Tax Court · 1977
- Giumarra Bros. Fruit Co. v. CommissionerUnited States Tax Court · 1970
- Lemmen v. CommissionerUnited States Tax Court · 1981
- Levenson & Klein, Inc. v. CommissionerUnited States Tax Court · 1977