Lucas v. Schneider

HICKS, Circuit Judge.

Bagby-Howe Drug Company, herein called the taxpayer, was a Kentucky corporation engaged at Louisville from 1904 to 1926 in the manufacture and sale of drugs at wholesale. Subsequent to March 1,1913, and before the taxable year 1925, the taxpayer acquired certain real estate with improve-*1007merits at 626 Main street, Louisville, at an aggregate cost of $69,460.46. Prior to 1925, it took deductions in its income tax returns for depreciation of said property in the amount of $15,263, leaving an undepre-ciated balance of $54,197.46. In the taxable year 1924 the taxpayer executed…