UNITED STATES SUPREME COURT DECISIONS ON-LINE

The provision of § 214(a)(8) of the Revenue Act of 1918, granting a deduction from income tax of

"a reasonable allowance for the exhaustion, wear and tear of property used in the trade or business,

Page 279 U. S. 334

including a reasonable allowance for obsolescence,"

does not authorize a deduction by a lessee for estimated obsolescence of buildings, where he had made no expenditure on this account, notwithstanding that the property was used by him in his business and held under long-term leases such a were treated by the local law as in many respects equivalent to conveyances of the fee, and the lessee was under obligation to keep up the buildings and to pay rent even if they were destroyed. P. 279 U. S. 335.

27 F.2d 200, reversed; 17 F.2d 650, affirmed.

Writs of certiorari, 278 U.S. 594, to the circuit court of appeals to review judgments which reversed judgments of the district court recovered by the present petitioners in actions brought by Wiener to recover money collected as income taxes.