Jarecki Mfg. Co. v. Commissioner
United States Board of Tax Appeals
1. The release by a corporation of an employee from a debt in consideration of the retention of his services held deductible from gross income under section 12(a) of the Revenue Act of 1916. 2. Cost of assets for the purpose of restoring surplus to invested capital and fair market value of assets as of March 1, 1913, determined.
1Opinion of the Court
*1173OPINION.
Milliken:
Briefly stated, three questions are presented, which are: (1) whether petitioner is entitled to deduct from its gross income for 1917 the amount of the overdraft of its employee, Weart; (2) what was the cost of petitioner’s fixed assets at Erie for the purpose of computing invested capital; and (3) what was the fair market value of such assets on March 1, 1913, for the purpose of computing depreciation.
*1174The first question is controlled by sections 12(a) and 13(d) of the Revenue Act of 1916. Section 12(a) provides for the deduction from gross income of a corporation of:
All the…
2Cases cited2 opinions
- McCardle v. Indianapolis Water Co.Supreme Court of the United States · 1926
- United States v. Philadelphia Knitting Mills Co.Court of Appeals for the Third Circuit · 1921
3Cited by6 opinions
- Philadelphia Steel & Iron Corp. v. CommissionerUnited States Tax Court · 1964
- Eckert v. CommissionerUnited States Tax Court · 1960
- Jarecki Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Lewis v. CommissionerUnited States Tax Court · 1946
- Pearsall v. CommissionerUnited States Tax Court · 1977
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