Tonawanda Coke Corp. v. Commissioner
United States Tax Court
T purchased a coke-producing plant shortly after the plant had suffered a devastating fire. T made certain expenditures to remove debris from the fire and to repair the plant. The expenditures included the removal of ice and tar, the replacement of destroyed piping, and the shoring up of the plant's steel structure.
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T purchased a coke-producing plant shortly after the plant had suffered a devastating fire. T made certain expenditures to remove debris from the fire and to repair the plant. The expenditures included the removal of ice and tar, the replacement of destroyed piping, and the shoring up of the plant's steel structure. Respondent determined that the expenditures were for "demolition" for purposes of sec. 1.165-3(a)(1), Income Tax Regs., and that therefore the expenditures must be allocated to T's basis in the underlying land, rather than to its basis in the coke plant. Held, because no…
1Opinion of the Court
WRIGHT, Judge:
Respondent determined a deficiency in petitioner’s Federal income tax for taxable year 1983 in the amount of $358,074. After concessions by both parties, the sole issue remaining for decision is whether a portion of the cost of repairing a fire-damaged coke plant is attributable to a demolition for purposes of section 1.165-3(a)(l), Income Tax Regs., and therefore is properly chargeable to capital account with respect to the underlying land, rather than with respect to the coke plant.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts, supplemental…
2Cases cited6 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- First Sav. & Loan Asso. v. CommissionerUnited States Tax Court · 1963
- Hotel Sulgrave, Inc. v. CommissionerUnited States Tax Court · 1954
- Gilman v. CommissionerUnited States Tax Court · 1979
- Charles L. Tidwell and Corinne S. Tidwell v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1962
1 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- De Cou v. CommissionerUnited States Tax Court · 1994
- De Cou v. CommissionerUnited States Tax Court · 1994
- Tonawanda Coke Corp. v. CommissionerUnited States Tax Court · 1990