Building Syndicate Co. v. United States

Appellant seeks to recover federal income taxes paid for the calendar year 1953 in the amount of $23,669.38, on the ground that it should be allowed additional depreciation deductions on certain real estate that it owns.

In 1927 the Northwestern Bank Building in Portland, Oregon, was owned by the Northwestern National Bank of Portland (hereafter “Northwestern”). During the year 1927, Northwestern offered this building for sale through one George N. Block, a real estate broker. Block paid Northwestern $10,000 for an option to purchase said property for $2,-202,133.07. Block thereafter acquired a financial commitment from George W. York & Company, Inc., (hereafter “York”), of Cleveland, Ohio, to underwrite an issue of land trust certificates for $1,250,000, said certificates to represent the equitable title to the property. York in turn persuaded the Union Trust Company of Cleveland to issue such land trust certificates and act as trustee for the certificate holders. Since legal restrictions did not permit a Cleveland banking institution to hold real estate outside of Ohio, Union Trust Company associated the Security Savings & Trust Company of Portland, Oregon, with it to act as…