Casey v. United States

This is an action by taxpayers, husband and wife, who were members of a joint venture engaged in certain phases of the lumbering business, for a refund of federal income taxes paid for the calendar years 1960 and 1961. The sole question involved is whether the plaintiffs’ proportionate shares of the amortized cost of access logging roads are (1) as plaintiffs contend, deductible as ordinary and necessary business expenses under § 162 of the Internal Revenue *234Code of 1954,1 or (2) as the Government contends, capital in nature constituting part of the adjusted depletion basis (cost) of tbe…