Cotton Concentration Co. v. Commissioner

1. Where expenditures were made, partly for a new roof and partly for an old roof, held, that only the amount which can be identified as having been expended for repairs may be deducted. 2. In determining gain or loss on conversion of capital assets, due allowance must be made for depreciation. 3. Where the taxpayer owned two buildings, one of which was entirely destroyed and the other partly destroyed by fire, and only one was reconstructed, of larger size and at greater cost than the amount of insurance received to cover damage to both, held, that any gain realized from the insurance is…