Journal Tribune Publishing Co. v. Commissioner
United States Tax Court
Petitioner operated a newspaper establishment under the terms of written leases. It made expenditures for plant equipment and furniture which it claims to be deductible in the entirety in the year paid. Assets acquired by such expenditures had a useful life of more than 1 year.
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Petitioner operated a newspaper establishment under the terms of written leases. It made expenditures for plant equipment and furniture which it claims to be deductible in the entirety in the year paid. Assets acquired by such expenditures had a useful life of more than 1 year. Held, expenditures were made for capital assets and must, therefore, be recovered on a depreciation basis over the useful life of the assets acquired or the remaining term of the leases, whichever is the lesser.
1Opinion of the Court
OPINION.
Withey, Judge:
Petitioner made expenditures for newspaper machinery, equipment, and office furniture during its fiscal year ending October 31, 1948, in the amount of $15,897.80. Of this amount, $3,658.05 is the proceeds from the sale of property originally demised under the leases wherein petitioner was lessee and Perkins Brothers Company and The Tribune Company were lessors. By the leases’ terms petitioner was bound to' account to the lessors for the proceeds from the sale of said originally demised property, but it was permitted under those terms to use the proceeds from such sales…
2Cases cited4 opinions
- Hotel Kingkade v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1950
- Hotel Kingkade v. CommissionerUnited States Tax Court · 1949
- Frank & Seder Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1930
- Illinois Cent. R. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1937
3Cited by3 opinions
- Journal-Tribune Publishing Co. v. CommissionerUnited States Tax Court · 1962
- Journal Tribune Publishing Co. v. CommissionerUnited States Tax Court · 1953
- Journal-Tribune Publishing Co. v. CommissionerUnited States Tax Court · 1962