Thrifticheck Service Corp. v. Commissioner
United States Tax Court
The petitioner purchased the assets of a going business, including its customer structure represented by 200 contracts with customers, and continued to operate the business.
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The petitioner purchased the assets of a going business, including its customer structure represented by 200 contracts with customers, and continued to operate the business. Held, that the petitioner did not buy individual contracts but rather a single asset consisting of the aggregate of the contracts, that this asset did not have a limited useful life, and that the petitioner is not entitled to amortize and deduct the cost thereof under section 23(1) of the Internal Revenue Code of 1939.
1Opinion of the Court
Atkins, Judge:
The respondent determined a deficiency in the petitioner’s income tax for the fiscal year ended April 30, 1954, in the amount of $74,242.55. On brief the respondent conceded that the petitioner is entitled to a claimed deduction of $12,500 on account of a payment made under an agreement not to compete. There remain for decision the question whether petitioner is entitled to deduct, under section 23(1) of the Internal Revenue Code of 1939, a claimed amount of $119,817.27 as a portion of the cost of 200 customer contracts acquired on April 30,1953, and the question whether…
2Cases cited4 opinions
- Anchor Cleaning Service, Inc. v. CommissionerUnited States Tax Court · 1954
- Meredith Pub. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1933
- Successful Farming Pub. Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- Reserve Natural Gas Co. of Louisiana v. CommissionerUnited States Board of Tax Appeals · 1928
3Cited by56 opinions
- Manhattan Co. of Virginia, Inc. v. CommissionerUnited States Tax Court · 1968
- Boe v. CommissionerUnited States Tax Court · 1961
- Thrifiticheck Service Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1961
- Westinghouse Broadcasting Co. v. CommissionerUnited States Tax Court · 1961
- Computing & Software, Inc. v. CommissionerUnited States Tax Court · 1975
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