Lexington Brewing Co. v. Commissioner
United States Board of Tax Appeals
1. OBSOLESCENCE OF TANGIBLE PROPERTIES DUE TO FEDERAL PROHIBITION. - Between October 24, 1919, and January 16, 1920, petitioner discontinued the use of certain tangible assets having a depreciated cost on December 31, 1919, of $37,231.18. On December 31, 1919, it also owned certain saloon fixtures having a depreciated cost of $25,153.52. After January 16, 1920, it continued to use some of these fixtures in manufacturing lager and near beer, gave some away, broke up some for…
Read the full summary
1. OBSOLESCENCE OF TANGIBLE PROPERTIES DUE TO FEDERAL PROHIBITION. - Between October 24, 1919, and January 16, 1920, petitioner discontinued the use of certain tangible assets having a depreciated cost on December 31, 1919, of $37,231.18. On December 31, 1919, it also owned certain saloon fixtures having a depreciated cost of $25,153.52. After January 16, 1920, it continued to use some of these fixtures in manufacturing lager and near beer, gave some away, broke up some for kindling wood and sold some for $75. Evidence did not show that at the close of 1919 petitioner had any special…
1Opinion of the Court
*757OPINION.
Green:
The net income shown in the deficiency notice should be reduced by the sum of $12,495.31, being the amount of the additional depreciation which the Commissioner has conceded.
Petitioner contends that machinery, equipment, and saloon fixtures, having a total depreciated cost and book value of $62,384.70, and having a total salvage value of $6,185.85, were rendered obsolete and useless by the advent of national prohibition; and that it should be permitted to write off against income, ratably over the period February 1, 1918, to January 16, 1920, the loss occasioned by the aforesaid…
2Cited by1 opinion
- Lexington Brewing Co. v. CommissionerUnited States Board of Tax Appeals · 1927