Hoffman v. Commissioner
United States Tax Court
Sec. 167 -- Depreciation -- Exhaustion of Property Used in a Business. -- The cost of a contract or a lease for the use of space, for a definite period, in which to place vending machines is deductible over the period of the lease as depreciation under sec. 167 of the Internal Revenue Code of 1954.
1Opinion of the Court
OPINION
Muedoce:, Judge:
The Commissioner in the deficiency notices stated that amortization under section 187 is not allowable with respect to the cost of the location contracts because they “are of such an indefinite character that no probable useful life can be determined.” The evidence shows the error of that reasoning.
The unrefuted testimony is that each written contract or lease was for a definite period of years stated in the contract, could be enforced at law by either party for those years but for those years only, and carried no provision for or promise of renewal. Also it is clear…
2Cases cited3 opinions
- Commissioner of Internal Revenue v. Seaboard Finance Company, Seaboard Finance Company, Cross v. Commissioner of Internal Revenue, CrossCourt of Appeals for the Ninth Circuit · 1966
- United Benefit Life Insurance Company v. McCroryDistrict Court, D. Nebraska · 1965
- George D. Patterson, Jr., District Director of Internal Revenue v. The Birmingham News CompanyCourt of Appeals for the Fifth Circuit · 1965
3Cited by4 opinions
- Ithaca Indus. v. CommissionerUnited States Tax Court · 1991
- Trigon Insurance v. United StatesDistrict Court, E.D. Virginia · 2002
- Hoffman v. CommissionerUnited States Tax Court · 1967
- Ithaca Indus. v. CommissionerUnited States Tax Court · 1991