Palmer v. United States

This case involves the question of the allowance of amortization of war facilities as a deduction against gross income under section 234 (a) (8)1 of the revenue act of 1918, 40 Stat. 1057, 1077.

*652There is no dispute about the amount of amortization allowable to the plaintiff under the facts. The amount allowed was as follows:

1918_$251,725.72

1919_ 2, 681.47

The net taxable income of the Racine Auto Tire Company for the year 1918 as adjusted without the benefit of the amortization deduction was $160,281.76. This income, as will be seen, was entirely extinguished by applying against it the losses…