Marigold Garden Co. v. Commissioner
United States Board of Tax Appeals
1. Where the usefulness of business property is lost to a taxpayer through the operation of the prohibition law, and the property is neither abandoned nor sold but is placed in storage, the cost thereof is not deductible as a loss. 2. Earned surplus may not be reduced by the difference between the depreciation reserve shown on taxpayer's books and the amount of accumulated depreciation for prior years computed at a fixed percentage on a straight-line basis, where it is not…
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1. Where the usefulness of business property is lost to a taxpayer through the operation of the prohibition law, and the property is neither abandoned nor sold but is placed in storage, the cost thereof is not deductible as a loss. 2. Earned surplus may not be reduced by the difference between the depreciation reserve shown on taxpayer's books and the amount of accumulated depreciation for prior years computed at a fixed percentage on a straight-line basis, where it is not shown that the books do not reflect depreciation actually sustained or that the property had a value or was in a…
1Opinion of the Court
*370OPINION.
SteRNhagen :
The respondent concedes thnt his determination of net income included a duplicate disallowance of one item and hence that his determined net income should be reduced by $1,710.07, and also that his determined invested capital should be increased by $4,289,63. ‘
May the petitioner deduct as a loss the $1,710.-07 cost of glassware which prohibition made useless to it in its business but which it kept in storage? It was not abandoned,- for petitioner has it'in its exclusive possession, where, should' an occasion arise, it may call it into use. It was not sold, and it does not…
2Cited by5 opinions
- American Cigar Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- Buckeye Producing Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Marigold Garden Co. v. CommissionerUnited States Board of Tax Appeals · 1927
- Moraine Hotel Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Morand Bros. v. CommissionerUnited States Board of Tax Appeals · 1927