Legal Opinion

Kennedy Laundry Co. v. Commissioner

United States Board of Tax Appeals

Decided January 14, 1942No. Docket No. 104965Published

For the years 1932 to 1935 petitioner claimed depreciation at the rate of 10 percent when the proper rate should have been 8 percent. Because of net operating losses petitioner got no tax advantage from the excessive rate.

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For the years 1932 to 1935 petitioner claimed depreciation at the rate of 10 percent when the proper rate should have been 8 percent. Because of net operating losses petitioner got no tax advantage from the excessive rate. In 1937 petitioner adopted a rate of 8 percent, which the Commissioner accepted and applied to 1936. Held, to the extent that petitioner received no tax advantage in such preceding years, its base for depreciation as of December 31, 1935, should be computed by employing the rate of 8 percent for the years 1932 to 1935. Pittsburgh Brewing Co. v. Commissioner, 107 Fed.(2d)…

1Opinion of the Court

KENNEDY LAUNDRY COMPANY, A CORPORATION, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

Kennedy Laundry Co. v. Commissioner

Docket No. 104965.

United States Board of Tax Appeals

46 B.T.A. 70; 1942 BTA LEXIS 912;

January 14, 1942, Promulgated

For the years 1932 to 1935 petitioner claimed depreciation at the rate of 10 percent when the proper rate should have been 8 percent. Because of net operating losses petitioner got no tax advantage from the excessive rate. In 1937 petitioner adopted a rate of 8 percent, which the Commissioner accepted and applied to 1936. Held, to the extent that…

2Cases cited1 opinion

  1. Kennedy Laundry Co. v. CommissionerUnited States Board of Tax Appeals · 1942

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