Valmont Industries, Inc. v. Commissioner
United States Tax Court
Held, petitioner failed to prove that respondent abused his discretion in disallowing part of its additions to its bad debt reserve. Held, further, petitioner's galvanizing facilities were buildings within the meaning of sec. 48(a)(1)(B), I.R.C. 1954, and, therefore, did not qualify for the investment credit. Held, further, petitioner's use of double declining balance depreciation on its galvanizing facilities denied.
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Held, petitioner failed to prove that respondent abused his discretion in disallowing part of its additions to its bad debt reserve. Held, further, petitioner's galvanizing facilities were buildings within the meaning of sec. 48(a)(1)(B), I.R.C. 1954, and, therefore, did not qualify for the investment credit. Held, further, petitioner's use of double declining balance depreciation on its galvanizing facilities denied. Held, further, petitioner is not entitled to depreciation and investment credit on the zinc charge to its galvanizing kettles.
1Opinion of the Court
Wiles, Judge:
Respondent determined the following deficiencies in petitioner’s Federal income taxes:
Taxable year Deficiency
Jan. 1, 1972 — Dec. 30, 1972 . $128,030
Dec. 31, 1972 — Dec. 29, 1973. 133,238
Dec. 30, 1973-Dec. 28, 1974. 179,947
After concessions, the remaining issues for decision are:(1) Whether respondent abused his discretion under section 166(c)1 by disallowing part of petitioner’s addition to its bad debt reserve for the taxable years ended December 29, 1973, and December 28,1974.(2) Whether petitioner’s two galvanizing facilities were eligible for the investment tax credit under…
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