Macabe Co. v. Commissioner
United States Tax Court
A corporation, several days before the close of its fiscal year, sold an office building it had owned for 9 years at a price in excess of its depreciated basis. The sale occurred substantially prior to the expiration of the building's useful life as estimated by the corporation.
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A corporation, several days before the close of its fiscal year, sold an office building it had owned for 9 years at a price in excess of its depreciated basis. The sale occurred substantially prior to the expiration of the building's useful life as estimated by the corporation. Held, under the circumstances of this case, the amount received for the building upon its sale does not constitute or otherwise determine its salvage value, and the corporation is entitled to a depreciation deduction in the year of sale.
1Opinion of the Court
OPINION
Fay, Judge:
The respondent determined a deficiency of $45,935.83 in the income tax of petitioner Macabe Co., Inc. (hereinafter sometimes referred to as the petitioner), for its fiscal year ended July 31, 1958.2 The deficiency results from the disallowance of a depreciation deduction on an office building owned by petitioner in the year it sold the building. Respondent contends that petitioner is not entitled to depreciation on the building in the year of sale because the aggregate depreciation taken by petitioner thereon in prior years, plus an amount respondent regards as the salvage…
Also in this document: Dissent.
2Cases cited18 opinions
- United States v. LudeySupreme Court of the United States · 1927
- Massey Motors, Inc. v. United StatesSupreme Court of the United States · 1960
- Detroit Edison Co. v. CommissionerSupreme Court of the United States · 1943
- Burnet v. Niagara Falls Brewing Co.Supreme Court of the United States · 1931
- Hertz Corp. v. United StatesSupreme Court of the United States · 1960
13 more not listed; retrieve them via the Exa API.
3Cited by38 opinions
- Fribourg Navigation Co. v. CommissionerSupreme Court of the United States · 1966
- South Texas Rice Warehouse Co. v. CommissionerUnited States Tax Court · 1965
- Simon v. Comm'rUnited States Tax Court · 1994
- Davis v. CommissionerUnited States Tax Court · 1980
- Liddle v. CommissionerUnited States Tax Court · 1994
33 more not listed; retrieve them via the Exa API.