Lightsey v. Commissioner of Internal Revenue

The taxpayer brings up for review a decision of the Board of Tax Appeals wherein it disallowed a deduction for depreciation in the capital assets of Lightsey Brothers, a copartnership, in the computation of the income taxes of the firm for the years 1924 and 1926. The taxpayer was a member of the firm which in 1918 took over the business of a corporation engaged in the manufacture of lumber. In the partnership returns, $10,-000 was claimed for depreciation in the year 1924, and nothing for the year 1926. Disallowance of the deduction for 1924 was recommended by a revenue agent, because the…