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
Giumarra Bros. Fruit Co., Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Giumarra Bros. Fruit Co. v. Commissioner
Docket No. 5078-68
United States Tax Court
55 T.C. 460; 1970 U.S. Tax Ct. LEXIS 15;
December 10, 1970, Filed
Decision will be entered under Rule 50.
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…
2Cases cited2 opinions
- Morris v. CommissionerUnited States Tax Court · 1962
- Giumarra Bros. Fruit Co. v. CommissionerUnited States Tax Court · 1970