Olean Times-Herald Corp. v. Commissioner
United States Board of Tax Appeals
OBSOLESCENCE. - Two newspapers combined on January 1, 1932, and thereafter used the plant of one to the exclusion of the other. A decision was reached in 1933 that the idle plant would never be used. The land and building were put up for sale in 1933 and a sale was made in 1935. Held, no deduction for obsolescence is allowable for 1933; held, further, that no amount is deductible as a loss sustained in 1933.
1Opinion of the Court
*924OPINION".
MuRdock:
The only issue is whether or not the Commissioner erred in disallowing a deduction of $15,573.41 as obsolescence on the Herald building for 1933. Section 23 (k) of the Revenue Act of 1932 permits the deduction of “a reasonable allowance for the exhaustion, wear and tear of property used in the trade or business, including a reasonable allowance for obsolescence.” Those deductions are for the purpose of permitting a taxpayer to recover the cost of its property out of its earnings as the property is used up in- its trade or business. The total of the deductions plus the salvage…
2Cases cited2 opinions
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