Spalding v. Commissioner
United States Tax Court
Petitioners operated an automobile wrecking yard in which vehicles were disassembled and useable parts were selected, cleaned, and held for sale. Petitioner constructed a chain link fence to keep thieves out of the yard. Held: Petitioners are entitled to the investment credit under sec. 38 for the fence. Their operation constitutes "manufacturing" or "production" and the fence was used as "an integral part" of the operation, within the meaning of sec. 48(a)(1)(B)(i).
1Opinion of the Court
Hall, Judge:
Respondent determined a deficiency of $691.78 in petitioners’ 1971 Federal income tax.
The sole issue is whether a fence erected by petitioners in 1971 to enclose a portion of their auto wrecking business qualifies as “section 381 property” for purposes of the investment credit.
FINDINGS OF FACT
Spme of the facts have been stipulated and are so found.
Petitioners resided in Spokane, Wash., at the time they filed their petition.
Petitioners have been owners and operators of Spalding Auto & Truck Wrecking, a vehicle wrecking yard, for more than 40 years. They handle primarily automobiles…
2Cases cited11 opinions
- United States v. KaiserSupreme Court of the United States · 1960
- Lykes Bros. Steamship v. United StatesUnited States Court of Claims · 1975
- Farber v. CommissionerUnited States Tax Court · 1961
- United Telecommunications, Inc. v. CommissionerUnited States Tax Court · 1975
- Jack and Celia Farber v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1963
6 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
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- Illinois Cereal Mills, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1986
- Garnac Grain Co. v. CommissionerUnited States Tax Court · 1990
- Texas Instruments v. CommissionerUnited States Tax Court · 1992
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