Kennedy Laundry Co. v. Commissioner
United States Board of Tax Appeals
For the years 1932 to 1935 petitioner claimed depreciation at the rate of 10 percent when the proper rate should have been 8 percent. Because of net operating losses petitioner got no tax advantage from the excessive rate.
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For the years 1932 to 1935 petitioner claimed depreciation at the rate of 10 percent when the proper rate should have been 8 percent. Because of net operating losses petitioner got no tax advantage from the excessive rate. In 1937 petitioner adopted a rate of 8 percent, which the Commissioner accepted and applied to 1936. Held, to the extent that petitioner received no tax advantage in such preceding years, its base for depreciation as of December 31, 1935, should be computed by employing the rate of 8 percent for the years 1932 to 1935. Pittsburgh Brewing Co. v. Commissioner, 107 Fed.(2d)…
1Opinion of the Court
*72OPINION.
Van Fossan:
The question underlying determination of the stated issue in this case is the proper rate of depreciation applicable to the petitioner’s machinery and equipment for the years from 1932 to 1935, inclusive. The petitioner contends that the life expectancy of those assets was 12% years, effective January 1,1932; that the depreciation sustained must be computed at the 8 percent rate from 1932 to 1938, inclusive, even though the 10 percent rate had been used from 1932 to 1935, inclusive; and that the unexhausted base cost should be increased to the extent that the depreciation…
2Cited by8 opinions
- Helvering v. Virginian Hotel CorporationCourt of Appeals for the Fourth Circuit · 1943
- Molner v. CommissionerUnited States Tax Court · 1944
- Repplier Coal Co. v. CommissionerUnited States Tax Court · 1942
- First Nat'l Bank of Fort Worth v. Comm'rUnited States Tax Court · 1943
- Kennedy Laundry Co. v. CommissionerUnited States Board of Tax Appeals · 1942
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