Forgeus v. Commissioner
United States Board of Tax Appeals
1. Certain expenditures held to be deductible as ordinary and necessary expenses. 2. Useful life of building determined. 3. Legal expenses paid in defending a suit arising out of a transaction directly connected with the petitioner's business are ordinary and necessary expenses and as such are deductible.
1Opinion of the Court
*293OPINION.
MoRRis:
We are satisfied from the evidence that of the $7,500 expended in the year 1919, $3,600 constituted ordinary and necessary expenses which are deductible in computing the petitioner’s net income for that year. See Appeal of Illinois Merchants Trust Co., 4 B. T. A. 103. The building acquired by the petitioner in 1915 was constructed in 1869. Based on the uncontroverted evidence that its useful life from the date of acquisition was from 10 to 15 years, we are of the opinion the petitioner is entitled to a depreciation allowance at the rate of 6% per cent on the cost of $60,000,…
2Cited by2 opinions
- Dorr v. United StatesDistrict Court, D. Massachusetts · 1937
- Forgeus v. CommissionerUnited States Board of Tax Appeals · 1927