Even Realty Co. v. Commissioner
United States Board of Tax Appeals
Due allowance must be made, in ascertaining gain or loss upon the sale of capital assets, for exhaustion, wear and tear and obsolescence occurring during the period of ownership, whether or not deductions have been taken therefor in prior tax returns. The Revenue Act of 1918 does not give a taxpayer the right to elect whether to take deductions in the years in which the facts justifying them occur or to waive them and make later returns as if such facts had not occurred.
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Due allowance must be made, in ascertaining gain or loss upon the sale of capital assets, for exhaustion, wear and tear and obsolescence occurring during the period of ownership, whether or not deductions have been taken therefor in prior tax returns. The Revenue Act of 1918 does not give a taxpayer the right to elect whether to take deductions in the years in which the facts justifying them occur or to waive them and make later returns as if such facts had not occurred. The Commissioner should compute taxes for each year on the basis of all the facts even though the taxpayer may, previously,…
1Opinion of the Court
OPINION.
Ivins :
The taxpayer from 1909 to 1920 was the owner of an office building in St. Louis and derived its income solely from the opera*357tion thereof. On its hooks and its returns under the Corporation Tax Act of 1909 and the income tax provisions of the Revenue Act of 1913 and subsequent revenue acts, it never made any provision or claimed any deduction for depreciation or for exhaustion, wear and tear, or obsolescence of the building. It sold the building in 1920, and it becomes incumbent upon us to determine the extent of the gain upon such sale that should be included in the taxpayer’s…
2Cases cited7 opinions
- Towne v. EisnerSupreme Court of the United States · 1918
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Stratton's Independence, Ltd. v. HowbertSupreme Court of the United States · 1913
- Goodrich v. EdwardsSupreme Court of the United States · 1921
- Walsh v. BrewsterSupreme Court of the United States · 1921
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3Cited by35 opinions
- Macabe Co. v. CommissionerUnited States Tax Court · 1964
- Fed. Home Loan Mortg. Corp. v. Comm'rUnited States Tax Court · 2003
- Armco Inc. v. Glenfed Financial Corp.District Court, D. New Jersey · 1989
- Manhattan General Equipment Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Moses Lake Homes, Inc. v. CommissionerUnited States Tax Court · 1964
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