A. J. Tower Co. v. Commissioner
United States Board of Tax Appeals
1. AMORTIZATION. - Held, deductions claimed in 1918 and 1919 returns for amortization of war facilities should be reduced by as much of an award received in 1920 from the War Department as was made to cover loss in war facilities. 2. L. S. Ayers & Co.,1 B.T.A. 1135, followed.
1Opinion of the Court
*103OPINION.
Artindell:
The first issue relates to respondent’s action in computing amortization allowable to petitioner as a deduction from gross income for the calendar years 1918 and 1919 under the provisions of section 234(a) (8) of the Revenue Act of 1918. Petitioner claims the right to deduct the total amount of the loss in value of the facilities, which it is agreed was $67,937.80, irrespective of the fact that in 1920 the War Department, in settlement of its claims on account of cancellation of the contracts, for performance of which the facilities were acquired, paid $78,477.61, and that…
2Cited by2 opinions
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- A. J. Tower Co. v. CommissionerUnited States Board of Tax Appeals · 1929