Commissioner of Internal Revenue v. Moore. Moore v. Commissioner of Internal Revenue

For consideration here are petitions by both the above named parties for review of two decisions of the Tax Court relating to claimed deficiencies in the income taxes of the taxpayer Mary Young Moore for the years 1943, 1944 and 1945. The Tax Court upheld taxpayer’s claim of a right to make deductions from gross income on account of depreciation attributable to a half interest in a building located in Los Angeles, but rejected her contention that additional deductions should be allowed through amortization of a lease upon the lot where the building was located.

Taxpayer and her mother, Mrs. Mary C. Young, were the owners of the lot of land mentioned, when, on October 1, 1924, they executed a 99 year lease to Sun Realty Company as lessee. The lease required the lessee to demolish a building then on the premises and to construct at its own expense a new building thereon to cost not less than $2,000,000. Rental was to be $10,000 per month until June 30, 1926, and $20,000 per month thereafter for the entire remainder of the term. Lessee agreed to pay all taxes and other levies and charges on the property. The lease contemplated the making of a sub-lease to Barker Bros. Corporation,…