Lomas Santa Fe, Inc. v. Commissioner Of Internal Revenue

693 F.2d 71 82-2 USTC P 9658 LOMAS SANTA FE, INC., and Subsidiary Companies; Lomas Santa Fe Country Club, Norco Landscape & Maintenance Co., Petitioners and Appellants, v. COMMISSIONER OF INTERNAL REVENUE, Respondent and Appellee. No. 81-7092. United States Court of Appeals, Ninth Circuit. Argued and Submitted March 1, 1982. Decided Nov. 1, 1982. David R. Clark, Aylward, Kintz & Stiska, San Diego, Cal., for petitioners and appellants. Libero Marinelli, Jr., Washington, D.C., argued, for respondent and appellee; Daniel F. Ross, Washington, D.C., on brief. Appeal from the United States Tax Court. Before HUG, TANG and PREGERSON, Circuit Judges. TANG, Circuit Judge: 1 This is an appeal from a Tax Court judgment in favor of the Commissioner. The issue presented is whether a taxpayer may claim a depreciation deduction under I.R.C. Sec. 167 1 for the amortization of an estate for years in real property if the estate was created by the taxpayer splitting its fee simple interest into two parts and conveying the remainder to a wholly owned subsidiary. We conclude that this estate for years is not depreciable for tax purposes and affirm the Tax Court. 2 The facts are carefully…