Elliott-Granite Linen Corp. v. Commissioner
United States Board of Tax Appeals
1. Petitioner held not entitled, under the provisions of section 206(b) of the Revenue Act of 1926, to deduct in 1926 the net losses of predecessor corporations for 1925. 2. In 1926 petitioner took over certain assets for which it issued its stock to the transferors. No question of gain or loss is involved.
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1. Petitioner held not entitled, under the provisions of section 206(b) of the Revenue Act of 1926, to deduct in 1926 the net losses of predecessor corporations for 1925. 2. In 1926 petitioner took over certain assets for which it issued its stock to the transferors. No question of gain or loss is involved. Held, that petitioner's depreciation basis with respect to said assets is the cost of the assets to the transferors, without diminution for prior accumulated depreciation up to the date of transfer. Held, further, no depreciation allowable with respect to assets whose cost had been fully…
1Opinion of the Court
*937OPINION.
MaRquette :
Petitioner contends that it is entitled, under the provisions of section 206 (b) of the Revenue Act of 1926, to deduct, from its income for its taxable period in that year, the net losses of its predecessor companies for the preceding year. There is no dispute as to the fact of the losses.
The statute relied upon provides:(b) If, for any taxable year, it appears upon tbe production of evidence satisfactory to tbe Commissioner that any taxpayer bas sustained a net loss, tbe amount thereof shall be allowed as a deduction in computing tbe net income of *938tlie taxpayer for the…
2Cases cited1 opinion
- Chicago, Milwaukee & St. Paul Railway Co. v. Minneapolis Civic & Commerce Ass'nSupreme Court of the United States · 1918
3Cited by8 opinions
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- Manhattan General Equipment Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Baltimore & O. R. Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Elliott-Granite Linen Corp. v. CommissionerUnited States Board of Tax Appeals · 1932
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