Plainfield-Union Water Co. v. Comm'r
United States Tax Court
Petitioner, a privately owned water company, had tar-painted cast-iron water pipes through which it supplied well water prior to 1950, at which time it connected its system to an adjacent system which used aggressive (acidic) river water. This river water caused tuberculation in petitioner's pipe nearest the connection, and petitioner eventually put cement lining in that part of its pipes.
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Petitioner, a privately owned water company, had tar-painted cast-iron water pipes through which it supplied well water prior to 1950, at which time it connected its system to an adjacent system which used aggressive (acidic) river water. This river water caused tuberculation in petitioner's pipe nearest the connection, and petitioner eventually put cement lining in that part of its pipes. Held, cleaning out this pipe and lining it with cement is a currently deductible repair.
1Opinion of the Court
FORRESTER, Judge:
Respondent has determined a deficiency of $16,47l.611 in petitioner’s income tax for the calendar year 1957. The only issue remaining before us is whether a certain expenditure made for cleaning and lining of pipe is a deductible repair or a capital expenditure.2
FINDINGS OE FACT.
Some of the facts have been stipulated and are so found.
Petitioner, a New Jersey corporation incorporated in 1906, is a public utility engaged in the business of supplying water and, in connection therewith, maintaining a system of water mains and pipes used in conducting such supply of water to users…
2Cases cited7 opinions
- Illinois Merchants Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1926
- Abraham Teitelbaum v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1961
- Hotel Sulgrave, Inc. v. CommissionerUnited States Tax Court · 1954
- Buckland v. United StatesDistrict Court, D. Connecticut · 1946
- Bonwit Teller & Co. v. CommissionerUnited States Board of Tax Appeals · 1929
2 more not listed; retrieve them via the Exa API.
3Cited by46 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Coors v. CommissionerUnited States Tax Court · 1973
- Mennuto v. CommissionerUnited States Tax Court · 1971
- Wolfsen Land & Cattle Co. v. CommissionerUnited States Tax Court · 1979
- Oberman Mfg. Co. v. CommissionerUnited States Tax Court · 1967
41 more not listed; retrieve them via the Exa API.