Hort v. Commissioner, 313 U.S. 28 (1941)

Hort v. Commissioner

No. 517

Argued March 7, 1941
Decided March 31, 1941
313 U.S. 28

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SECOND CIRCUIT

Syllabus

1. An amount received by a lessor in consideration of the cancellation of a lease of real estate is income taxable to him under § 22(a) of the Revenue Act of 1932, and must be reported as gross income in its entirety. P. 30.

2. Although the amount so received be less than the difference between the present value of the unmatured rental payments and the fair rental value of the property for the unexpired period of the lease, there is no loss deductible under § 23(e) of the Act. P. 32.

3. Even though the lease be regarded as "property," the consideration received for its cancellation is not, for the purposes of the Revenue Act of 1932, a return of capital. P. 31.

112 F.2d 167 affirmed.

Certiorari, 311 U.S. 641, to review the affirmance of a decision of the Board of Tax Appeals, 39 B.T.A. 922, sustaining the determination of a deficiency in income tax.