Burke v. Commissioner
United States Tax Court
1. Held, that a partially constructed hotel did not, as a matter of fact, lose its useful value in the year 1950, and was not abandoned by petitioner as an asset in said year.
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1. Held, that a partially constructed hotel did not, as a matter of fact, lose its useful value in the year 1950, and was not abandoned by petitioner as an asset in said year. Deduction of abandonment loss for said year is denied. 2. Held, further, that certain fees and expenses paid by petitioner to his attorneys in 1946 and 1947, are not deductible by him in the year 1950. Such expenses were either nondeductible capital expenditures or were current expenses of the prior years when paid.
1Opinion of the Court
PmRCE, Judge:
The Commissioner determined a deficiency of $19,622.87 in the petitioner’s income tax for the year 1950.
The two issues for decision are:(1) Whether the petitioner is entitled to deduct in 1950, as an abandonment loss under section 23(e) (2) of the 1939 Code, the cost of concrete building foundations and architect’s plans for a luxury hotel on which construction had been suspended in 1946 following the commencement of litigation affecting the property, and on which the construction had not been resumed up to the end of the year 1950, although petitioner still retained title to…
2Cases cited6 opinions
- W. B. Davis & Son, Inc. v. CommissionerUnited States Tax Court · 1945
- The Citizens Bank of Weston v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1958
- Citizens Bank of Weston v. CommissionerUnited States Tax Court · 1957
- Commissioner of Internal Revenue v. McCarthyCourt of Appeals for the Seventh Circuit · 1942
- Fraser Brick Co. v. CommissionerUnited States Board of Tax Appeals · 1928
1 more not listed; retrieve them via the Exa API.
3Cited by25 opinions
- A. J. Industries, Inc. v. United StatesCourt of Appeals for the Ninth Circuit · 1974
- Louisville and Nashville Railroad Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1981
- Louisville & N. R. Co. v. CommissionerUnited States Tax Court · 1976
- Stanley Burke v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1960
- A. J. Industries, Inc. v. The United StatesUnited States Court of Claims · 1967
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