Cleveland Home Brewing Co. v. Commissioner
United States Board of Tax Appeals
Only intangible property paid in for stock is subject to the limitation of 25 per cent of capital stock outstanding provided in section 326 of the Revenue Act of 1918. In conformity with this provision of the statute the disallowance of good will in the computation of invested capital is reduced in the instant case from $85,073.27 to $8,919.55. Depreciation charges on tangible property made on the books of a taxpayer prior to January 1, 1918, will not, for invested capital…
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Only intangible property paid in for stock is subject to the limitation of 25 per cent of capital stock outstanding provided in section 326 of the Revenue Act of 1918. In conformity with this provision of the statute the disallowance of good will in the computation of invested capital is reduced in the instant case from $85,073.27 to $8,919.55. Depreciation charges on tangible property made on the books of a taxpayer prior to January 1, 1918, will not, for invested capital purposes, be disturbed without positive evidence that the depreciation actually sustained had not been written off by the…
1Opinion of the Court
*89OPINION.
James:
The taxpayer bases its appeal upon three alleged errors made by the Commissioner in the determination of its tax. These are:
1. That the Commissioner in computing net income for the year 1918 has denied sufficient depreciation upon plant and equipment and has denied special obsolescence thereon, the amount now in dispute on the item being $24,256.80.
2. That the Commissioner improperly reduced invested capital by increasing the depreciation charge for years prior to 1918 in the sum of $82,134.34 for that year, and $77,718.79 for 1919.
3. That the Commissioner improperly reduced…
2Cited by17 opinions
- Perlmutter v. CommissionerUnited States Tax Court · 1965
- Bane v. CommissionerUnited States Tax Court · 1971
- Pridgen v. CommissionerUnited States Tax Court · 1969
- Rosenberg v. CommissionerUnited States Tax Court · 1970
- Carbo Petroleum Co. v. CommissionerUnited States Board of Tax Appeals · 1928
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