D. N. & E. Walter & Co. v. Commissioner
United States Board of Tax Appeals
1. Held, that the evidence establishes that the taxpayer acquired good will for stock, but is insufficient to establish the value thereof. 2. The taxpayer is entitled to have its profits tax assessed under section 328 of the Revenue Act of 1918. 3. The amount paid for services rendered in procuring a lease is a capital expenditure which should be spread over the life of the lease.
1Opinion of the Court
*144OPINION.
Trammell:
The principal issue presented by this appeal is whether the taxpayer is entitled to include in its invested capital for the year 1918 any amount on account of good will, if any, acquired by it from the partnership D. N. & E. Walter & Co. in exchange for shares of its capital stock. The taxpayer contends that good will was so acquired; that it had an actual cash value of $268,777.00, and that it should be included in invested capital subject to the limitations on intangibles.
The evidence establishes that in the year 1896 the taxpayer, in exchange for 648 shares of its capital…
2Cited by4 opinions
- Baker v. Commissioner (A)United States Board of Tax Appeals · 1938
- Bonwit Teller & Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Continental Products Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- D. N. & E. Walter & Co. v. CommissionerUnited States Board of Tax Appeals · 1926