Ewald Iron Co. v. Commissioner
United States Board of Tax Appeals
ABANDONMENT OF PROPERTY - LOSS OF USEFUL VALUE. - In 1933 petitioner discontinued the manufacture of drilled staybolts, primarily for the reason that, under the existing conditions, such department of its business was being operated as a loss. Petitioner did not scrap the bolt machines, but stored them in its drilling plant, where they were available at any time for resumption of operations.
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ABANDONMENT OF PROPERTY - LOSS OF USEFUL VALUE. - In 1933 petitioner discontinued the manufacture of drilled staybolts, primarily for the reason that, under the existing conditions, such department of its business was being operated as a loss. Petitioner did not scrap the bolt machines, but stored them in its drilling plant, where they were available at any time for resumption of operations. Held, petitioner is not entitled to a deduction from gross income for the taxable year on account of loss of useful value of its bolt machines.
1Opinion of the Court
OPINION.
Hill:
Respondent determined a deficiency in petitioner’s income tax for the year 1933 in the amount of $1,712.61, from which petitioner appeals and assigns as error the refusal of respondent to allow a deduction of $11,127.79 as a loss sustained upon machinery alleged to have been discarded during the taxable year.
Petitioner is a Kentucky corporation, with its principal office at Louisville. In the year 1922 petitioner began the manufacture of drilled staybolts, which were sold to railroads and locomotive companies for use in railroad locomotives. Petitioner continued to manufacture…
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- United California Bank v. CommissionerUnited States Tax Court · 1964
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