§1019 — Property on which lessee has made improvements
11 citing cases
Statute Text — 26 U.S.C. §1019
Neither the basis nor the adjusted basis of any portion of real property shall, in the case of the lessor of such property, be increased or diminished on account of income derived by the lessor in respect of such property and excludable from gross income under section 109 (relating to improvements by lessee on lessor’s property).
Treasury Regulations
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Treas. Reg. §1.1019-1Property on which lessee has made improvements
In any case in which a lessee of real property has erected buildings or made other improvements upon the leased property and the lease is terminated by forfeiture or otherwise resulting in the realization by such lessor of income which, were it not for the provisions of section 109, would be includible in gross income of the lessor, the amount so excluded from gross income shall not be taken into account in determining the basis or the adjusted basis of such property or any portion thereof in the hands of the lessor. If, however, in any taxable year beginning before January 1, 1942, there has been included in the gross income of the lessor an amount representing any part of the value of such property attributable to such buildings or improvements, the basis of each portion of such property shall be properly adjusted for the amount so included in gross income. For example, A leased in 1930 to B for a period of 25 years unimproved real property and in accordance with the terms of the lease B erected a building on the property. It was estimated that upon expiration of the lease the building would have a depreciated value of $50,000, which value the lessor elected to report (beginning in 1931) as income over the term of the lease. This method of reporting was used until 1942. In 1952 B forfeits the lease. The amount of $22,000 reported as income by A during the years 1931 to 1941, inclusive, shall be added to the basis of the property represented by the improvements in the hands of A. If in such case A did not report during the period of the lease any income attributable to the value of the building erected by the lessee and the lease was forfeited in 1940 when the building was worth $75,000, such amount, having been included in gross income under the law applicable to that year, is added to the basis of the property represented by the improvements in the hands of A. As to treatment of such property for the purposes of capital gains and losses, see subchapter P (section 1201 and following), chapter 1 of the Code.
11 Citing Cases
1999-201, regarding whether the tenant retained a right to remove trade fixtures, and remanding for a determination of whether the improvements at issue were trade fixtures within the meaning of California Civil Code section 1019 (California Code section 1019)(West 1982).
Section 1019 of the California Civil Code provides: A tenant may remove from the demised premises, any time during the continuance of his term, anything affixed thereto for purposes of trade, * * * if the removal can be effected without injury to the premises, unless the thing has, by the manner in which it is affixed, become an integral part of th
* * * * * * * (b) Fraud.--If any part of any underpayment (as defined in subsection (c)) of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 50 percent of the underpayment.
Under the Internal Revenue Code of 1939, the civil fraud addition to tax for income tax was imposed by section 293(b), with a special rule in section 51(g)(6)(B) in certain joint tax return situations; for gift tax by section 1019(b); and generally for other taxes where tax returns or lists were filed by section 3612(d)(2).
ore us on this issue is 1987, we apply the statute as amended in 1988, because sec. 1005(c)(9) of the TAMRA 88, Pub. L. 100-647, 102 Stat. 3342, 3392, amended sec. 163(h)(6) retroactively to taxable years beginning after Dec. 31, 1986. See TAMRA 88, sec. 1019(a), 102 Stat. at 3593; TRA 86, sec. 511(e), 100 Stat. at 2249. 37 When a check is mailed, as opposed to being hand delivered as in the instant case, the mailing of the check, properly addressed, generally constitutes delivery of that check
Section 2652(a)(1)(A) provides that, "in the case of any property subject to the [Federal estate tax]," the term "transferor" means the decedent." Because of Mrs.