Simmons Co. v. Commissioner
United States Board of Tax Appeals
1. The value of patents for the purpose of depreciation determined. 2. A commission paid for the sale of a corporation's own stock can never serve to increase invested capital, but may reduce invested capital where the previous invested capital included earned surplus or undivided profits. 3. The Revenue Act of 1918 makes no provision for the deduction from income of the amount of the commission paid by a corporation for the sale of its own capital stock.
1Opinion of the Court
*640OPINION.
Value of Patents.
Murdock :
Upon the question of the value of the patents for the purpose of determining a depreciation deduction, the petitioner *641relied chiefly upon the testimony of John F. Gail. This man entered the employ of the predecessor corporation in 1898, as foreman in the coil spring department. A little later he started to design machinery and equipment for reducing the cost of its manufactured articles. At that time he was a master mechanic. He has continued in its employ and at the present time, he is consulting engineer for the company. He has been a director in the…
2Cases cited3 opinions
- LaBelle Iron Works v. United StatesSupreme Court of the United States · 1921
- Lincoln Chemical Co. v. EdwardsCourt of Appeals for the Second Circuit · 1923
- Lincoln Chemical Co. v. EdwardsDistrict Court, S.D. New York · 1921
3Cited by21 opinions
- Estate of Thomas v. CommissionerUnited States Tax Court · 1985
- Fort Howard Corp. v. CommissionerUnited States Tax Court · 1994
- Commercial Inv. Trust Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- Van Keuren v. CommissionerUnited States Board of Tax Appeals · 1933
- RJ Reynolds Tobacco Co. v. Commissioner of Int. Rev.Court of Appeals for the Fourth Circuit · 1938
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