Spartanburg Terminal Co. v. Commissioner
United States Tax Court
Petitioner built a railroad tunnel and connecting tracks in downtown Spartanburg, S.C. Held: Petitioner failed to carry his burden to establish a useful life for its grading and tunnel bore. Consequently, no depreciation deductions are allowed with respect to these assets. Also, no investment credit is allowed for these assets. Held, further: Petitioner failed to carry his burden to establish a useful life for the easement obtained to construct and operate the tunnel.
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Petitioner built a railroad tunnel and connecting tracks in downtown Spartanburg, S.C. Held: Petitioner failed to carry his burden to establish a useful life for its grading and tunnel bore. Consequently, no depreciation deductions are allowed with respect to these assets. Also, no investment credit is allowed for these assets. Held, further: Petitioner failed to carry his burden to establish a useful life for the easement obtained to construct and operate the tunnel. No depreciation deductions are allowed for the cost of this easement. Held, further: Depreciation is allowed with respect to…
1Opinion of the Court
Irwin, Judge:
Respondent has determined the following deficiencies in petitioner’s Federal income tax:
Year ended Deficiency Year ended Deficiency
12/31/64_ $28,688.42 12/31/66_ $64,236.63
12/31/65_ 71,531.50 12/31/67_ 40,641.82
The parties have made several concessions, leaving for our resolution only the issues: whether petitioner is entitled to depreciation deductions with respect to certain costs of constructing a railroad tunnel; whether an investment credit is allowable with respect to these costs; and whether an investment credit is allowable with respect to the costs of installing fences…
2Cases cited25 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- United States v. LudeySupreme Court of the United States · 1927
- Burnet v. Niagara Falls Brewing Co.Supreme Court of the United States · 1931
- Southern Natural Gas Company v. The United StatesUnited States Court of Claims · 1969
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3Cited by22 opinions
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- Illinois Cereal Mills, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1986
- Banc One Corp. v. CommissionerUnited States Tax Court · 1985
- Kansas City S. R. Co. v. CommissionerUnited States Tax Court · 1981
- Burlington Northern Inc. v. United StatesUnited States Court of Claims · 1982
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