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incurred to obtain the zoning change,11 and (2) the remaining
$6,674,552 was incurred to obtain the Grand Tower variation.12
We hold that Library Square may depreciate and include in
the depreciable basis of Library Tower the $7,143,156 that we
have determined is attributable to obtaining the Library Tower
variation. We further hold that Library Tower may not
depreciate the $11,799,493 that we have determined is
attributable to obtaining the zoning change, as that zoning
change produced benefits of an indefinite and undeterminable
duration with respect to the Library Tower parcel land. Galt v.
Commissioner, 19 T.C. at 910.
We hold that Fifth & Grand may depreciate and include in
the depreciable basis of Grand Place Tower the $6,674,552 that
we have determined is attributable to obtaining the Grand Place
Tower variation. We further hold that Fifth & Grand may not
depreciate the $11,025,448 that we have determined is
attributable to obtaining the zoning change because the zoning
change produced benefits of an indefinite and undeterminable
11 $17,700,000 x 747,488 sq. ft. = $11,025,448.
1,200,000 sq. ft.
12 $17,700,000 x 452,512 sq. ft. = $6,674,552.
1,200,000 sq. ft.
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