Legal Opinion

H. G. Fenton Material Co. v. Commissioner

United States Tax Court

Decided June 23, 1980No. Docket No. 7287-78Published

Petitioner incurred expenses in obtaining certain special use permits and in removing sand from one of its minesites to a second minesite. Petitioner argued that the costs of acquiring the permits were currently deductible under sec. 616, I.R.C. 1954, as "development expenditures" and that the costs of sand removal were currently deductible as business expenses. Held, the costs of acquiring the special use permits are capital expenditures and not "development expenditures."

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Petitioner incurred expenses in obtaining certain special use permits and in removing sand from one of its minesites to a second minesite. Petitioner argued that the costs of acquiring the permits were currently deductible under sec. 616, I.R.C. 1954, as "development expenditures" and that the costs of sand removal were currently deductible as business expenses. Held, the costs of acquiring the special use permits are capital expenditures and not "development expenditures." Geoghegan & Mathis, Inc. v. Commissioner, 55 T.C. 672 (1971), affd. 453 F.2d 1324 (6th Cir. 1972), followed. Held,…

1Opinion of the Court

H. G. Fenton Material Company, Petitioner v. Commissioner of Internal Revenue, Respondent

H. G. Fenton Material Co. v. Commissioner

Docket No. 7287-78

United States Tax Court

74 T.C. 584; 1980 U.S. Tax Ct. LEXIS 112;

June 23, 1980, Filed

Decision will be entered under Rule 155.

Petitioner incurred expenses in obtaining certain special use permits and in removing sand from one of its minesites to a second minesite. Petitioner argued that the costs of acquiring the permits were currently deductible under sec. 616, I.R.C. 1954, as "development expenditures" and that the costs of sand removal were…

2Cases cited17 opinions

  1. United States v. GilmoreSupreme Court of the United States · 1963
  2. Woodward v. CommissionerSupreme Court of the United States · 1970
  3. Commissioner v. Idaho Power Co.Supreme Court of the United States · 1974
  4. Robertson v. United StatesSupreme Court of the United States · 1952
  5. Blaine M. And Virginia C. Madden v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1975

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