- 28 -
Court in Chevy Chase Land Co. distinguished Galt. See id. at
487-488. Unlike Chevy Chase Land Co., in our case MTP obtained
the necessary zoning change for the Library Square tract and
proceeded with the Library Square project and the building of
Library Tower and Grand Place Tower.
c. Allocation
As previously stated, the costs that MTP and its successors
incurred to obtain the Library Tower and Grand Place Tower
variations are includable in the depreciable bases of those
buildings and are depreciable by Library Square and by Fifth &
Grand, but neither Library Square nor Fifth & Grand may
depreciate the costs incurred to obtain the zoning change.
The record does not show the cost of obtaining the zoning
change separate from the variations. We suspect those separate
costs may not be readily available. Because of the difficulty
of separately accounting for those costs, we believe this is an
appropriate situation for the Court to identify a reasonable
method to make an allocation. See Cohan v. Commissioner, 39
F.2d 540, 544 (2d Cir. 1930). We conclude that the allocation
between the zoning change and the variations should be based
upon the relative increase in each property’s buildable net
floor area square footage attributable to the zoning change as
opposed to the variations.
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011