Dumont-Airplane & Marine Instruments, Inc. v. Commissioner
United States Tax Court
In 1936 American Mond sold the Clearfield Plant to the Clearfield Corporation for $ 15,000. In 1939 the latter corporation leased it to Dumont for 5 years with an option to purchase at any time within the 5-year period for $ 7,500 plus the cost of improvements. At December 31, 1942, Dumont exercised its option and purchased the plant for $ 43,000. It allocated the purchase price on the basis of $ 4,000 for the land and $ 39,000 for the buildings.
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In 1936 American Mond sold the Clearfield Plant to the Clearfield Corporation for $ 15,000. In 1939 the latter corporation leased it to Dumont for 5 years with an option to purchase at any time within the 5-year period for $ 7,500 plus the cost of improvements. At December 31, 1942, Dumont exercised its option and purchased the plant for $ 43,000. It allocated the purchase price on the basis of $ 4,000 for the land and $ 39,000 for the buildings. Dumont claimed depreciation on its cost basis until 1951, when, in reliance on Brown Shoe Co. v. Commissioner, 339 U.S. 583 (1950), it increased its…
1Opinion of the Court
Tietjens, Judge:
The Commissioner determined deficiencies in the petitioner’s income and excess profits taxes for the years 1951, 1952, and 1953, as follows:
year Deficiency
1951_$35,446.59
1952_ 40,948.65
1953_ 9,430. 93
The petitioner conceded that certain adjustments made by the Commissioner were correct. There are two issues left for decision: (1) Whether the Commissioner properly determined the petitioner’s basis in the Clearfield Plant buildings for the purpose of depreciation and for computation of the petitioner’s excess profits credit based on invested capital; and (2) whether it was…
2Cases cited12 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Libson Shops, Inc., v. Koehler, District Director of Internal RevenueSupreme Court of the United States · 1957
- Detroit Edison Co. v. CommissionerSupreme Court of the United States · 1943
- Brown Shoe Co. v. CommissionerSupreme Court of the United States · 1950
- Stanton Brewery v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1949
7 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Nye v. CommissionerUnited States Tax Court · 1968
- Clarksdale Rubber Co. v. CommissionerUnited States Tax Court · 1965
- E. O. Bookwalter, District Director of Internal Revenue v. Hutchens Metal Products, Inc.Court of Appeals for the Eighth Circuit · 1960
- Clarksdale Rubber Co. v. CommissionerUnited States Tax Court · 1965
- Dumont-Airplane & Marine Instruments, Inc. v. CommissionerUnited States Tax Court · 1957
2 more not listed; retrieve them via the Exa API.