H. G. Fenton Material Co. v. Commissioner
United States Tax Court
Petitioner incurred expenses in obtaining certain special use permits and in removing sand from one of its minesites to a second minesite. Petitioner argued that the costs of acquiring the permits were currently deductible under sec. 616, I.R.C. 1954, as "development expenditures" and that the costs of sand removal were currently deductible as business expenses. Held, the costs of acquiring the special use permits are capital expenditures and not "development expenditures."
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Petitioner incurred expenses in obtaining certain special use permits and in removing sand from one of its minesites to a second minesite. Petitioner argued that the costs of acquiring the permits were currently deductible under sec. 616, I.R.C. 1954, as "development expenditures" and that the costs of sand removal were currently deductible as business expenses. Held, the costs of acquiring the special use permits are capital expenditures and not "development expenditures." Geoghegan & Mathis, Inc. v. Commissioner, 55 T.C. 672 (1971), affd. 453 F.2d 1324 (6th Cir. 1972), followed. Held,…
1Opinion of the Court
Sterrett, Judge:
By letter dated May 26, 1978, respondent determined deficiencies in income taxes due from petitioner as follows:
TYE Dec. 31— Deficiency
1974. $33,379
1975. 46,941
1976. 37,539
After concessions, the only issues remaining for our decision are (1) whether certain costs petitioner incurred in obtaining special use permits are capital or currently deductible, and (2) whether amounts petitioner expended to remove sand from one minesite to a second minesite are capital or currently deductible.
FINDINGS OF FACT
Some of the facts were stipulated and are so found. The stipulation of facts…
2Cases cited16 opinions
- United States v. GilmoreSupreme Court of the United States · 1963
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Commissioner v. Idaho Power Co.Supreme Court of the United States · 1974
- Robertson v. United StatesSupreme Court of the United States · 1952
- Blaine M. And Virginia C. Madden v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1975
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3Cited by7 opinions
- Guardian Indus. Corp. v. CommissionerUnited States Tax Court · 1991
- Anderson v. CommissionerUnited States Tax Court · 1984
- Anderson v. CommissionerUnited States Tax Court · 1984
- Guardian Indus. Corp. v. CommissionerUnited States Tax Court · 1991
- H. G. Fenton Material Co. v. CommissionerUnited States Tax Court · 1980
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