Cleveland Ry. v. Commissioner
United States Board of Tax Appeals
Petitioner operates a street railway system in Cleveland, Ohio. Its right to operate this system is derived from a franchise granted by the city in 1910 for a period of 25 years, extended in 1919 for a period of 25 years and extended in 1926 for a period of 25 years.
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Petitioner operates a street railway system in Cleveland, Ohio. Its right to operate this system is derived from a franchise granted by the city in 1910 for a period of 25 years, extended in 1919 for a period of 25 years and extended in 1926 for a period of 25 years. Held, that the franchise is not perpetual but definitely limited in duration; that petitioner is entitled to amortize the March 1, 1913, value thereof, adjusted by the depreciation charged off during years prior to the last renewal. Held, further, that the fact the city has reserved the right to purchase and take over the entire…
1Opinion of the Court
OPINION.
Mellott:
The Commissioner disallowed the deduction claimed by petitioner from its gross income for the year 1933 as amortization of the March 1, 1913, value of its franchise in the amount of $65,138.47, and determined a deficiency in its income tax for said year in the amount of $8,956.54. The sole issue is whether he erred in doing so. The facts were stipulated as follows:
The petitioner was organized under the laws of Ohio on February 26, 1893, to operate a system of street railways in the City of Cleveland, Ohio. Its right to operate its properties in the City of Cleveland is derived…
2Cases cited3 opinions
- Blair v. City of ChicagoSupreme Court of the United States · 1906
- New York Electric Lines Co. v. Empire City Subway Co.Supreme Court of the United States · 1914
- Wilmington Railroad v. Reid, SheriffSupreme Court of the United States · 1872
3Cited by11 opinions
- Philadelphia Park Amusement Co. v. United StatesUnited States Court of Claims · 1954
- Westinghouse Broadcasting Co. v. CommissionerUnited States Tax Court · 1961
- Commissioner of Internal Revenue v. Indiana Broadcasting CorporationCourt of Appeals for the Seventh Circuit · 1965
- Indiana Broadcasting Corp. v. CommissionerUnited States Tax Court · 1964
- Gulf Tel. Corp. v. CommissionerUnited States Tax Court · 1969
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