Silver Queen Motel v. Commissioner
United States Tax Court
The taxpayer first elected the double-declining-balance method of computing depreciation for certain motel properties but now concedes that such method was not available to it and seeks to adopt the 150-percent declining-balance method instead. The Commissioner determined that since the taxpayer had failed to initially adopt an acceptable method of computing depreciation, it was restricted to the use of the straight-line method.
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The taxpayer first elected the double-declining-balance method of computing depreciation for certain motel properties but now concedes that such method was not available to it and seeks to adopt the 150-percent declining-balance method instead. The Commissioner determined that since the taxpayer had failed to initially adopt an acceptable method of computing depreciation, it was restricted to the use of the straight-line method. Held, as the taxpayer had not previously regularly used the double declining-balance method, its adoption of the 150-percent declining-balance method was not a change…
1Opinion of the Court
Forhester, Judge:
The Commissioner has determined deficiencies in petitioner’s income tax of $5,579.30 and $3,876.35 for the taxable years ending in 1966 and 1967, respectively. As petitioner has now conceded that it may not employ the double declining-balance method to compute depreciation for certain of its properties, the only issue remaining for our decision is whether petitioner may now compute depreciation by using the 150-percent declining-balance method in lieu of the straight-line method.
FINDINGS OF FACT
All of the facts have been stipulated and are so found.
Petitioner filed its…
2Cases cited18 opinions
- Graves v. New York Ex Rel. O'KeefeSupreme Court of the United States · 1939
- Koshland v. HelveringSupreme Court of the United States · 1936
- J. E. Riley Investment Co. v. CommissionerSupreme Court of the United States · 1940
- Harper v. CommissionerUnited States Tax Court · 1970
- Pacific National Co. v. WelchSupreme Court of the United States · 1938
13 more not listed; retrieve them via the Exa API.
3Cited by31 opinions
- Wildman v. CommissionerUnited States Tax Court · 1982
- Dougherty v. CommissionerUnited States Tax Court · 1973
- Buddy Schoellkopf Products, Inc. v. CommissionerUnited States Tax Court · 1975
- Law v. CommissionerUnited States Tax Court · 1986
- Diebold, Inc. v. United StatesUnited States Court of Claims · 1989
26 more not listed; retrieve them via the Exa API.