Ticket Office Equipment Co. v. Commissioner
United States Tax Court
1. Petitioner's equity invested capital held properly computed by respondent on failure of proof as to value of property paid in for stock. 2. Petitioner's deductions for compensation of officers, held reasonable, on facts. 3. Cost of welding machine held a capital expenditure and not deductible as an ordinary business expense. 4. (a) Insurance proceeds from partial destruction of a building by fire held taxable to extent not expended for replacement.
Read the full summary
1. Petitioner's equity invested capital held properly computed by respondent on failure of proof as to value of property paid in for stock. 2. Petitioner's deductions for compensation of officers, held reasonable, on facts. 3. Cost of welding machine held a capital expenditure and not deductible as an ordinary business expense. 4. (a) Insurance proceeds from partial destruction of a building by fire held taxable to extent not expended for replacement. (b) Insurance proceeds on contents of building destroyed in fire, totally exhausted to replace various destroyed items, not being allocable to…
1Opinion of the Court
OPINION.
Opper, Judge:
The first issue depends upon the amount to be determined as petitioner’s invested capital for excess profits tax purposes. The sole controversy involves the amount to be attributed to the so-called Sunvent patent. The record is silent as to any value attributable to it at the time petitioner was organized and indeed the indications are that it was worth considerably less than the figure allowed by respondent, if not entirely worthless. Since the patent was transferred to petitioner in exchange for the issuance of its stock, the value of the stock and hence of the patent…
2Cases cited15 opinions
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
- Edwards v. DouglasSupreme Court of the United States · 1925
- Randall v. BaileyNew York Court of Appeals · 1942
- Alexander Sprunt & Son v. Commissioner of Int. Rev.Court of Appeals for the Fourth Circuit · 1933
10 more not listed; retrieve them via the Exa API.
3Cited by36 opinions
- Towanda Textiles, Inc. v. United StatesUnited States Court of Claims · 1960
- Irby Construction Company v. United StatesUnited States Court of Claims · 1961
- Iowa Southern Utilities Company, a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1964
- Doering v. CommissionerUnited States Tax Court · 1963
- Electric Tachometer Corp. v. CommissionerUnited States Tax Court · 1961
31 more not listed; retrieve them via the Exa API.