Cleveland Electric Illuminating Co. v. United States

OPINION WITH RESPECT TO DEMOLITION ISSUE

PHILIP R. MILLER, Judge:

Statement

As its name implies, the plaintiff, Cleveland Electric Illuminating Co. (CEI), is engaged in the business of producing and selling electrical energy.

The question presented is whether or not the plaintiff’s demolition in 1970-72 of old residential and other farm structures on real estate plaintiff purchased for resale to potential electrical energy customers who would build large industrial plants thereon may give rise to deductions for losses on its income tax returns for those years.

In or about 1949, plaintiff became…