Tower Bldg. Corp. v. Commissioner
United States Tax Court
In 1934 petitioner filed a petition in bankruptcy under section 77B. It later filed a plan of reorganization, which was confirmed by the court "in all respects" in 1935. Under the plan petitioner exchanged all new capital stock for all of its then outstanding first and second mortgage bonds, unsecured indebtedness, and old capital stock. In June 1936 the court approved the final report and final account of the trustee, discharged the trustee, and canceled his bond.
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In 1934 petitioner filed a petition in bankruptcy under section 77B. It later filed a plan of reorganization, which was confirmed by the court "in all respects" in 1935. Under the plan petitioner exchanged all new capital stock for all of its then outstanding first and second mortgage bonds, unsecured indebtedness, and old capital stock. In June 1936 the court approved the final report and final account of the trustee, discharged the trustee, and canceled his bond. On July 12, 1938, the court appointed a special master to make an examination and report on the conduct of certain persons who…
1Opinion of the Court
OPINION.
Black, Judge:
In this proceeding we are asked to determine petitioner’s basis for depreciation. In this broad respect the issue is the same as was involved in Claridge Apartments Co. v. Commissioner, 323 U. S. 141; Alcazar Hotel, Inc., 1 T. C. 872; appeal dismissed on motion of the parties, C. C. A., 6th Cir., and Motor Mart Trust, 4 T. C. 931; on appeal, C. C. A., 1st Cir. We start with section 14 (a) of the Internal Revenue Code, which is as follows:(a) Basis foe Depreciation. — The basis upon which exhaustion, wear and tear, and obsolescence are to be allowed in respect of any…
2Cases cited3 opinions
- Claridge Apartments Co. v. CommissionerSupreme Court of the United States · 1944
- Alcazar Hotel v. CommissionerUnited States Tax Court · 1943
- Motor Mart Trust v. CommissionerUnited States Tax Court · 1945
3Cited by1 opinion
- Tower Bldg. Corp. v. CommissionerUnited States Tax Court · 1946