Amsterdam Theatres Corp. v. Commissioner
United States Board of Tax Appeals
1. The petitioner, having failed to prove the cost of a certain franchise, has failed to show error in respondent's determination of deductions for exhaustion thereof. 2. The cost of improvements to the floor supports and roof of a building held not to have been been ordinary and necessary expenses incurred in a trade or business and therefore not deductible.
1Opinion of the Court
*1165OPINION.
McMahon :
It is alleged that the respondent erred in disallowing as a deduction in each of the years 1925 and 1926, an amount of $5,000, representing exhaustion of a Keith franchise valued at $50,000, for which stock was issued. Section 234 (a) (I) of the Revenue Act of 1926 provides:.Sec. 234. (a) In computing tbe net income of a corporation subject to the tax imposed by section 230 there shall be allowed as deductions:
* ⅜ s¡t * ⅜ * :];(7) A reasonable allowance for the exhaustion, wear and tear of property used in the trade of business, including a reasonable allowance for…
2Cases cited1 opinion
- Beaumont, Sour Lake & Western Railway Co. v. BeaumontSupreme Court of the United States · 1930
3Cited by2 opinions
- Buckland v. United StatesDistrict Court, D. Connecticut · 1946
- Amsterdam Theatres Corp. v. CommissionerUnited States Board of Tax Appeals · 1931