Dumont-Airplane & Marine Instruments, Inc. v. Commissioner
United States Tax Court
In 1936 American Mond sold the Clearfield Plant to the Clearfield Corporation for $ 15,000. In 1939 the latter corporation leased it to Dumont for 5 years with an option to purchase at any time within the 5-year period for $ 7,500 plus the cost of improvements. At December 31, 1942, Dumont exercised its option and purchased the plant for $ 43,000. It allocated the purchase price on the basis of $ 4,000 for the land and $ 39,000 for the buildings.
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In 1936 American Mond sold the Clearfield Plant to the Clearfield Corporation for $ 15,000. In 1939 the latter corporation leased it to Dumont for 5 years with an option to purchase at any time within the 5-year period for $ 7,500 plus the cost of improvements. At December 31, 1942, Dumont exercised its option and purchased the plant for $ 43,000. It allocated the purchase price on the basis of $ 4,000 for the land and $ 39,000 for the buildings. Dumont claimed depreciation on its cost basis until 1951, when, in reliance on Brown Shoe Co. v. Commissioner, 339 U.S. 583 (1950), it increased its…
1Opinion of the Court
Dumont-Airplane & Marine Instruments, Inc., Petitioner, v. Commissioner of Internal Revenue, Respondent
Dumont-Airplane & Marine Instruments, Inc. v. Commissioner
Docket Nos. 59508, 60752
United States Tax Court
28 T.C. 1308; 1957 U.S. Tax Ct. LEXIS 80;
September 30, 1957, Filed
Decisions will be entered for the respondent.
In 1936 American Mond sold the Clearfield Plant to the Clearfield Corporation for $ 15,000. In 1939 the latter corporation leased it to Dumont for 5 years with an option to purchase at any time within the 5-year period for $ 7,500 plus the cost of improvements. At December 31,…
2Cases cited13 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Libson Shops, Inc., v. Koehler, District Director of Internal RevenueSupreme Court of the United States · 1957
- Detroit Edison Co. v. CommissionerSupreme Court of the United States · 1943
- Brown Shoe Co. v. CommissionerSupreme Court of the United States · 1950
- Stanton Brewery v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1949
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