Helvering v. Independent Life Insurance Co., 292 U.S. 371 (1934)

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Helvering v. Independent Life Insurance Co.

No. 689

Argued April 4, 1934
Decided May 21, 1934
292 U.S. 371

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SIXTH CIRCUIT

Syllabus

1. A federal tax upon part of a building occupied by the owner, or upon the rental value of the space, is a direct tax, and invalid unless apportioned. P. 378.

2. The rental value of a building used by the owner does not constitute income within the meaning of the Sixteenth Amendment. P. 379.

3. In computing the net income of life insurance companies under the Revenue Acts of 1921 and 1924, deductions for taxes, expenses, and depreciation, in respect of real estate owned and occupied in whole or in part by the taxpayer, are not permitted unless there be included in gross income the rental value of the pace so occupied, which amount must be not less than a sum which in addition to any rents received from other tenants shall provide a net income at the rate of 4 percentum of the book value of the real estate. Held, not inconsistent with the constitutional prohibition of unapportioned direct taxes. Art. I, § 9, cl. 4. Pp. 378, 381.

4. Congress has power to condition, limit, or deny deductions from gross income in order to arrive at the net that it chooses to tax. P. 381.

5. National Life Ins. Co. v. United States, 277 U.S. 508, distinguished. P. 381.

67 F.2d 470 reversed.

Certiorari, 291 U.S. 655, to review a judgment affirming a judgment of the District Court, which sustained a decision of the Board of Tax Appeals, 17 B.T.A. 757, adjudging an overpayment of income tax. A certificate in this case was dismissed, 288 U.S. 592.