Nachman v. Commissioner
United States Tax Court
Since 1941 annual retail liquor vendors' licenses have been issued by the city of Jacksonville, Florida, to a limited number of licensees and have been renewed to the holders thereof. In April 1944 petitioners expended $ 8,000 in acquiring from a licensee his license for the year ended September 30, 1944, for which the fee to the city was $ 750, and they have operated a liquor store under that license and renewals thereof ever since.
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Since 1941 annual retail liquor vendors' licenses have been issued by the city of Jacksonville, Florida, to a limited number of licensees and have been renewed to the holders thereof. In April 1944 petitioners expended $ 8,000 in acquiring from a licensee his license for the year ended September 30, 1944, for which the fee to the city was $ 750, and they have operated a liquor store under that license and renewals thereof ever since. Held, the sum of $ 7,250 was a capital expenditure for an asset having an indeterminate useful life beyond the taxable year and was not deductible in 1944.
1Opinion of the Court
OPINION.
KeRN, Judge:
Whether petitioners can avail themselves of a deduction in the one year before us for the total sum expended by them for the acquisition of an annual retail liquor license, and the reasonably anticipated privilege of periodic renewal thereof, is the single issue presented to us. It is the contention of petitioners that the entire $8,000 payment expended for this purpose is an allowable deduction, either as an ordinary and necessary business expense under section 23 (a) of the Internal Revenue Code,1 or as a loss sustained in a transaction entered into for profit which was…
2Cases cited2 opinions
- Leonard Refineries, Inc. v. CommissionerUnited States Tax Court · 1948
- East Kauai Water Co. v. CommissionerUnited States Tax Court · 1948
3Cited by55 opinions
- Dustin v. CommissionerUnited States Tax Court · 1969
- Houston Chronicle Publishing Company, Plaintiff-Appellee-Cross v. United States of America, Defendant-Appellant-CrossCourt of Appeals for the Fifth Circuit · 1973
- Westinghouse Broadcasting Co. v. CommissionerUnited States Tax Court · 1961
- Radio Station WBIR, Inc. v. CommissionerUnited States Tax Court · 1959
- Alamo Broadcasting Co. v. CommissionerUnited States Tax Court · 1950
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