Rockford Life Insurance v. Commissioner

This case involves the validity of a deficiency assessment of 1929 income taxes made under the Revenue Act of 1928. Section 202 defines gross income to be that re ceived from interest, dividends and rents. Section 203 (a) defines net income to be the gross less specified deductions including (5) “ investment expenses,” (6) “ Taxes and other expenses paid during, the taxable year exclusively upon or with respect to the real estate owned by the company . . .” and (7) “A reasonable allowance for the exhaustion, wear and tear of property, including a reasonable allowance for obsolescence.”…