Peerless Weighing & Vending Machine Corp. v. Commissioner
United States Tax Court
Petitioner paid and accrued about $ 26,000 in 1963 in order to accelerate the termination of a lease (which was to expire in 1970) so that petitioner could demolish an existing building and put the property to a more profitable use.
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Petitioner paid and accrued about $ 26,000 in 1963 in order to accelerate the termination of a lease (which was to expire in 1970) so that petitioner could demolish an existing building and put the property to a more profitable use. The lease was successfully terminated at the end of 1963 and demolition commenced on Jan. 3, 1964. Held: Petitioner is not entitled to deduct the $ 26,000 in 1963 as a business expense under sec. 162 of the Internal Revenue Code of 1954. The expenditure was for a capital asset (the unexpired term of the lease) which had a definite life beginning after the year…
1Opinion of the Court
Peerless Weighing and Vending Machine Corporation, Petitioner v. Commissioner of Internal Revenue, Respondent
Peerless Weighing & Vending Machine Corp. v. Commissioner
Docket No. 4893-66
United States Tax Court
52 T.C. 850; 1969 U.S. Tax Ct. LEXIS 72;
August 21, 1969, Filed
Decision will be entered for the respondent.
Petitioner paid and accrued about $ 26,000 in 1963 in order to accelerate the termination of a lease (which was to expire in 1970) so that petitioner could demolish an existing building and put the property to a more profitable use. The lease was successfully terminated at the end of…
2Cases cited6 opinions
- Miller v. CommissionerUnited States Board of Tax Appeals · 1928
- Heller Trust v. CommissionerUnited States Tax Court · 1946
- Trustee Corp. v. CommissionerUnited States Tax Court · 1964
- Wells Fargo Bank & Union Trust Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1947
- Peerless Weighing & Vending Machine Corp. v. CommissionerUnited States Tax Court · 1969
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