Kerr-Cochran, Inc. v. Commissioner
United States Tax Court
Held, that under the facts of this case the cost of the warehouse constructed by the petitioner was depreciable over the period of its expected life of 20 years, and not over the 5-year term of the lease of the ground on which the warehouse was situated, it being reasonably certain that the tenancy was to continue for an indefinite period of time.
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Held, that under the facts of this case the cost of the warehouse constructed by the petitioner was depreciable over the period of its expected life of 20 years, and not over the 5-year term of the lease of the ground on which the warehouse was situated, it being reasonably certain that the tenancy was to continue for an indefinite period of time. Held, further, that petitioner was availed of during the years 1951, 1952, and 1953 for the purpose of preventing the imposition of surtax upon its stockholders during those years and that it is, therefore, subject to the tax under section 102 of…
1Opinion of the Court
Mulronev, Judge:
The respondent determined deficiencies in income tax of the petitioner as follows:
Tear Deficiency
1951_-_$62,152.59
1952_ 43,518.38
1953_ 26, 499.20
Certain issues in this case have been settled by agreement which may be reflected by a Rule 50 computation. The two issues before us are (1) whether a warehouse constructed by the petitioner on leased land should be depreciated over the life of the building or amortized over the life of the lease; and (2) whether the petitioner was availed of during the taxable years for the purpose of preventing the imposition of surtax upon its…
2Cases cited4 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- Pelton Steel Casting Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1958
- Pelton Steel Casting Co. v. CommissionerUnited States Tax Court · 1957
- Kerr-Cochran, Incorporated, a Nebraska Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1958
3Cited by43 opinions
- Casey v. CommissionerUnited States Tax Court · 1962
- Buddy Schoellkopf Products, Inc. v. CommissionerUnited States Tax Court · 1975
- I. A. Dress Co. v. CommissionerUnited States Tax Court · 1959
- G. W. Van Keppel Company v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1961
- Highland Hills Swimming Club, Inc., a Corporation v. Earl R. Wiseman, District Director Internal RevenueCourt of Appeals for the Tenth Circuit · 1959
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