United States Supreme Court Cases & Opinions

U.S. Supreme Court

Helvering v. Bruun, 309 U.S. 461 (1940)

Helvering v. Bruun

No. 479

Argued February 28, 1940

Decided March 25, 1940

309 U.S. 461

Syllabus

1. Where, upon termination of a lease, the lessor repossessed the real estate and improvements, including a new building erected by the lessee, an increase in value attributable to the new building was taxable under the Revenue Act of 1932 as income of the lessor in the year of repossession. P. 309 U. S. 467.

Page 309 U. S. 462

2. Hewitt Realty Co. v. Commissioner, 76 F.2d 880, and decision of this Court dealing with the taxability vel non of stock dividends, distinguished. P. 309 U. S. 468.

3. Even though the gain in question be regarded as inseparable from the capital, it is within the definition of gross income in § 22(a) of the Revenue Act of 1932, and, under the Sixteenth Amendment, may be taxed without apportionment amongst the States. P. 309 U. S. 468.

105 F.2d 442 reversed.

Certiorari, 308 U.S. 544, to review the affirmance of a decision of the Board of Tax Appeals overruling the Commissioner's determination of a deficiency in income tax.

Page 309 U. S. 464