Legal Opinion

Coors Porcelain Co. v. Commissioner

United States Tax Court

Decided July 28, 1969No. Docket No. 1169-68PublishedCited by 32 opinions

Held: (1) That petitioner is not entitled to an extraordinary obsolescence deduction of $ 223,225.42 for the taxable year 1964 with respect to its fuel elements building because the building was not permanently retired from use in its trade or business as required by sec. 1.167(a)-8, Income Tax Regs. (2) That the estimated useful life of the fuel elements building as of Jan. 3, 1965, was 40 years.

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Held: (1) That petitioner is not entitled to an extraordinary obsolescence deduction of $ 223,225.42 for the taxable year 1964 with respect to its fuel elements building because the building was not permanently retired from use in its trade or business as required by sec. 1.167(a)-8, Income Tax Regs. (2) That the estimated useful life of the fuel elements building as of Jan. 3, 1965, was 40 years. (3) That amounts expended on certain items of equipment constitute nondeductible capital expenditures. (4) That petitioner is not entitled to a depreciation deduction of $ 829.26 or to a deduction…

1Opinion of the Court

OPINION"

Issue 1. Claimed 0 bsolescence Loss on Fuel Elements Building

The first issue for our consideration is whether petitioner is entitled to deduct $223,225.42 as an extraordinary obsolescence loss with respect to the fuel elements building in the taxable year ended January 3,1965.

Unfortunately the term “obsolescence” is nowhere defined in the Internal Revenue Code or the regulations promulgated thereunder. The decided cases do not contain any comprehensive definition. At best, they merely define the term by examples. See Real Estate-Land Title & Trust Co. v. United States, 309 U.S. 13…

2Cases cited18 opinions

  1. Bingler v. JohnsonSupreme Court of the United States · 1969
  2. Minnesota v. BlasiusSupreme Court of the United States · 1933
  3. Real Estate - Land Title & Trust Co. v. United StatesSupreme Court of the United States · 1940
  4. Burnet v. Niagara Falls Brewing Co.Supreme Court of the United States · 1931
  5. Illinois Merchants Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1926

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3Cited by32 opinions

  1. Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
  2. Coors Porcelain Company v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1970
  3. Zimmerman v. CommissionerUnited States Tax Court · 1976
  4. Gilman v. CommissionerUnited States Tax Court · 1979
  5. Hudlow v. CommissionerUnited States Tax Court · 1971

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