Fifth Street Bldg. v. Commissioner

This is a petition for review of the final order and decision of the Board of Tax Appeals. Involved are asserted deficiencies in petitioner's income taxes for the years 1921 and 1926, in the amounts of $16,710.96 and $1,142.72, respectively, determined by the Commissioner and redetermined by the Board of Tax Appeals. 24 B. T. A. 876. The facts are set forth in detail in the opinion of the Board. They are not in dispute, and are substantially as follows:

On November 1, 1920, Gladys Bilicke and A. B. C. Dohrmann were the executrix and executor, respectively, of the estate of A. C. Bilicke, deceased. The said estate owned real property, and the buildings thereon, situated in Los Angeles, Cal. In 1911, during his lifetime, A. C. Bilicke had executed three leases on the property to Muse, Faris & Walker Company, a corporation, as lessee, at an aggregate annual rental of $96,000, each lease to expire October 31, 1922. In 1916 these leases were assigned by the lessee to R. M. Walker and W. A. Faris, doing business under the firm name of Faris-Walker, the Fifth Street Store. On November 1, 1920, the said Gladys Bilicke and A. B. C. Dohrmann, as parties of the first part, and the said W.…