Baltimore & O. R. Co. v. Commissioner
United States Board of Tax Appeals
1. Pursuant to the terms of a contract providing for the relocation of certain tracks without expense to it, a subsidiary of the petitioner received a sum representing the capitalized increased cost to the recipient of operating its trains and maintaining its tracks due to the increase in length of and increase in curvature in the new tracks over the replaced assets.
Read the full summary
1. Pursuant to the terms of a contract providing for the relocation of certain tracks without expense to it, a subsidiary of the petitioner received a sum representing the capitalized increased cost to the recipient of operating its trains and maintaining its tracks due to the increase in length of and increase in curvature in the new tracks over the replaced assets. Held, that the amount represents prepayment of ordinary and necessary business expenses and constitutes taxable income. 2. The petitioner received amounts for the cost of constructing side and spur tracks under contracts…
1Opinion of the Court
OPINION.
Seawell :
The respondent determined deficiencies in income taxes for 1920 and 1923 in the respective amounts of $884,450.47 and $984,818.05. Soane of the issues raised were abandoned or disposed *196of by stipulation. This action of the parties will be reflected in the recomputations to be made under Rule 50. The issues remaining' for decision, together with the applicable facts, will be stated and decided in the order in which they appear in the petitioner’s brief. The proceeding was submitted upon a stipulation of facts, testimony of witnesses, and documentary evidence. Only so much of…
2Cases cited39 opinions
- R. H. Stearns Co. v. United StatesSupreme Court of the United States · 1934
- Continental Tie & Lumber Co. v. United StatesSupreme Court of the United States · 1932
- United States v. United Shoe Machinery Co. of New JerseySupreme Court of the United States · 1917
- Lovejoy v. CommissionerUnited States Board of Tax Appeals · 1930
- Great Northern Railway Co. v. CommissionerUnited States Board of Tax Appeals · 1927
34 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Denver & R. G. W. R. Co. v. CommissionerUnited States Tax Court · 1959
- Maytag v. CommissionerUnited States Tax Court · 1959
- Electric Energy, Inc. v. United StatesUnited States Court of Claims · 1987
- Stokes v. United StatesDistrict Court, S.D. New York · 1937
- Baboquivari Cattle Co. v. CommissionerUnited States Board of Tax Appeals · 1942
2 more not listed; retrieve them via the Exa API.