Hershey Mfg. Co. v. Commissioner
United States Board of Tax Appeals
1. A patent application is an assignable property right capable of being valued as evidence of the value of stock of a corporation for which it was exchanged. 2. Costs of development incurred subsequent to the filing of the application for a patent must be shown to add to the capital value of that patent before they can be added to the depreciable base of such patent. 3. A patent application is not a depreciable asset.
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1. A patent application is an assignable property right capable of being valued as evidence of the value of stock of a corporation for which it was exchanged. 2. Costs of development incurred subsequent to the filing of the application for a patent must be shown to add to the capital value of that patent before they can be added to the depreciable base of such patent. 3. A patent application is not a depreciable asset. When a patent issues, however, depreciation may be taken over the life of the patent. 4. Experimental expenses should be charged to capital or expense depending upon the nature…
1Opinion of the Court
HERSHEY MANUFACTURING CO., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Hershey Mfg. Co. v. Commissioner
Docket Nos. 28862, 32108.
United States Board of Tax Appeals
14 B.T.A. 867; 1928 BTA LEXIS 2898;
December 20, 1928, Promulgated
1. A patent application is an assignable property right capable of being valued as evidence of the value of stock of a corporation for which it was exchanged.
2. Costs of development incurred subsequent to the filing of the application for a patent must be shown to add to the capital value of that patent before they can be added to the depreciable base of…
2Cases cited10 opinions
- Marsh v. Nichols, Shepard & Co.Supreme Court of the United States · 1888
- Emerson Electric Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1926
- Hershey Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Durham v. SeymourSupreme Court of the United States · 1896
- Appeal of First National Bank of St. LouisUnited States Board of Tax Appeals · 1926
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