Cotton Concentration Co. v. Commissioner
United States Board of Tax Appeals
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…
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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…
1Opinion of the Court
*123OPINION.
Geaupnee: Counsel for both parties call our attention to the provisions of the lease as being determinative of the improvements and *124repairs which the taxpayer was required to make and of the expenditures which it was permitted to deduct in determining the net earnings payable to the lessor under its lease. These net earnings, as pointed out by the Commissioner, are obviously not the same as net income upon which the taxpayer’s liability to tax is based. We are not determining here the net earnings or profits of the taxpayer upon which the rental to be paid the lessor was to be based.…
2Cases cited1 opinion
- Duffy v. Central R. Co. of NJSupreme Court of the United States · 1925
3Cited by11 opinions
- Loco Realty Company v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1962
- Steuart Brothers, Inc., a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1958
- Buckland v. United StatesDistrict Court, D. Connecticut · 1946
- United Development Company v. United StatesDistrict Court, E.D. Missouri · 1962
- Bank of Houston v. CommissionerUnited States Tax Court · 1960
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