Commissioner of Internal Rev. v. Langwell Real Estate Corp.
| Decision Date | 18 March 1931 |
| Docket Number | No. 4403.,4403. |
| Citation | 47 F.2d 841 |
| Parties | COMMISSIONER OF INTERNAL REVENUE v. LANGWELL REAL ESTATE CORPORATION. |
| Court | U.S. Court of Appeals — Seventh Circuit |
G. A. Youngquist, Asst. Atty. Gen., and Sewall Key and John MacC. Hudson, Sp. Assts. to Atty. Gen. (C. M. Charest, Gen. Counsel, Bureau of Internal Revenue, and Dean P. Kimball, Sp. Atty., Bureau of Internal Revenue, both of Washington, D. C., of counsel), for petitioner.
David J. Greenberg, of Chicago, Ill., for respondent.
Before ALSCHULER, EVANS, and SPARKS, Circuit Judges.
EVANS, Circuit Judge (after stating the facts as above).
We find it impossible to escape the conclusion that, upon the tenant's release of its interest in said $50,000, respondent was enriched by that amount. Regulations 62, Treasury Department, article 50. It was relieved of its obligation to pay this amount to the tenant at the expiration of the lease. At the same time, and as a part of the same transaction, respondent released the tenant from its lease. Whether respondent suffered a loss by reason of the termination of the lease presents another issue, which is not covered by the findings of the Board of Tax Appeals. If respondent could have readily negotiated another lease with a responsible party, as favorable as the lease which was canceled, it suffered no loss. On the other hand, if it could not have negotiated such a lease, then it suffered a loss. The amount of such loss, if any, was the legitimate subject of proof. The actual execution of a new lease was not necessary to the determination of this issue. The rental value of such property could be shown by oral testimony.
The Board of Tax Appeals stated:
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Hort v. Commissioner of Internal Revenue
...of Warren Service Corp. v. Helvering, 2 Cir., 110 F.2d 723. 2 Cir., 112 F.2d 167. Because of conflict with Commissioner v. Langwell Real Estate Corp., 7 Cir., 47 F.2d 841, granted certiorari limited to the question whether, 'in computing net gain or loss for income tax purposes, a taxpayer ......
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Clarke v. State, 3 Div. 597
...saved. See Borin Corp. v. Commissioner of Internal Revenue, 314 U.S. 638, 62 S.Ct. 72, 86 L.Ed. 512; Commissioner of Internal Revenue v. Langwell Real Estate Corp., 7 Cir., 47 F.2d 841; Fitch v. Helvering, 8 Cir., 70 F.2d 583; Cohen v. Commissioner of Internal Revenue, 6 Cir., 77 F.2d 184, ......
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Commissioner of Internal Revenue v. Kellogg
...where the lessor is to pay the lessee interest on the deposited sum, as in the case relied upon by the Board. Commissioner v. Langwell Real Estate Corp., 7 Cir., 47 F.2d 841. In such a case the present worth of a release from an obligation to pay $125,000 in eight years is presumably the fa......
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Bradford Hotel Operating Co. v. Comm'r of Internal Revenue
...where the lessor is to pay the lessee interest on the deposited sum, as in the case relied upon by the Board. Commissioner v. Langwell Real Estate Corp., 7 Cir., 47 F.2d 841. In such a case the present worth of a release from an obligation to pay $125,000 in eight years is presumably the fa......