Briggs-Darby Constr. Co. v. Commissioner
United States Board of Tax Appeals
Petitioners issued all their capital stock to R. W. Briggs & Co. in exchange for a portion of the latter's machinery and equipment. The exchanges were made pursuant to contracts between R. W. Briggs & Co. and its superintendents whereby the superintendents were entitled to acquire a 45 percent interest in the business out of profits.
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Petitioners issued all their capital stock to R. W. Briggs & Co. in exchange for a portion of the latter's machinery and equipment. The exchanges were made pursuant to contracts between R. W. Briggs & Co. and its superintendents whereby the superintendents were entitled to acquire a 45 percent interest in the business out of profits. The depreciable assets were exchanged at a value in excess of their value on the books of R. W. Briggs & Co. Held, nontaxable exchanges occurred between R. W. Briggs & Co. and each of these petitioners, and the basis for depreciation is the same as it would be in…
1Opinion of the Court
*143OPINION.
ARNOLD:
In these proceedings R. W. Briggs & Co. exchanged certain depreciable assets for all the capital stock of each of the petitioners, pursuant to certain contracts with four of its superintendents. The depreciable assets had been valued by the contracting parties prior to their exchange for capital stock as having a value in excess of their depreciated value upon the books of R. W. Briggs & Co. The petitioners deducted depreciation based upon this increased valuation. This deduction respondent denied, but permitted a deduction for depreciation upon the same basis as such assets…
2Cases cited3 opinions
- Groman v. CommissionerSupreme Court of the United States · 1937
- Helvering v. BashfordSupreme Court of the United States · 1938
- Guilford v. MulkinNew York Supreme Court · 1895
3Cited by1 opinion
- Briggs-Darby Constr. Co. v. CommissionerUnited States Board of Tax Appeals · 1940