Manger Hotel Corp. v. Commissioner
United States Tax Court
Capital or Expense -- Equipment Purchased by Lessee. -- The cost of equipment purchased by a lessee for use in the leased premises is not necessarily deductible as an ordinary and necessary expense. It may be an expense or a capital expenditure recoverable through depreciation, depending upon circumstances not shown herein.
1Opinion of the Court
OPINION.
Murdock, Judge-.
The Commissioner determined a deficiency of $44.43 in income tax and one of $15,192.88 in excess profits tax for the fiscal year ended July 31,1943. The-only issue for decision is whether he erred in treating certain expenditures ás capital items subject to depreciation, instead of allowing +hem to be deducted as ordinary and necessary expenses. The facts have been stipulated.
The petitioner, a corporation, filed .its returns for the period in question with the collector of internal revenue for the third district of New York. It keeps its books and files its returns on…
2Cited by5 opinions
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- Klutz v. CommissionerUnited States Tax Court · 1979
- Manger Hotel Corp. v. CommissionerUnited States Tax Court · 1950
- Manger Hotel Corp. v. CommissionerUnited States Tax Court · 1948