Victory Glass, Inc. v. Commissioner
United States Tax Court
1. Income -- Deduction -- Depreciation -- Basis. -- 2. Excess Profits Tax -- Equity Invested Capital -- Property Paid in for Shares -- Basis -- Section 718 (a) (2). -- The petitioner acquired property in exchange for its preferred stock and its assumption of charges against the property.
Read the full summary
1. Income -- Deduction -- Depreciation -- Basis. -- 2. Excess Profits Tax -- Equity Invested Capital -- Property Paid in for Shares -- Basis -- Section 718 (a) (2). -- The petitioner acquired property in exchange for its preferred stock and its assumption of charges against the property. Held, the basis of the property for depreciation and for computing equity invested capital under section 718 (a) (2) is its cost to the petitioner, the value of the preferred stock and the amount of the liabilities assumed. 3. Excess Profits Tax -- Equity Invested Capital -- Paid-in Surplus -- Contributed…
1Opinion of the Court
OPINION.
Murdock, Judge:
The petitioner claims that the assets acquired through the foreclosure sale had a fair market value of $107,590.78 and the excess of that amount over $38,163.38, or $69,427.40, also should be included in equity invested capital, being property paid in as paid-in surplus or as a contribution to capital, and should be considered as a part of the basis of the assets for the purpose of computing depreciation. It advances no logical reason for regarding the $69,427.40 as a part of its basis for depreciation. The basis of property owned by a taxpayer is the cost of the…
2Cited by39 opinions
- Neilsen Lithographing Co. v. CommissionerUnited States Tax Court · 1952
- Jefferson Amusement Co. v. CommissionerUnited States Tax Court · 1952
- West Flagler Amusement Co. v. CommissionerUnited States Tax Court · 1954
- Owen v. United StatesDistrict Court, D. Nebraska · 1955
- Superior Valve & Fittings Co. v. CommissionerUnited States Tax Court · 1952
34 more not listed; retrieve them via the Exa API.