Appeal of Bergner

Board of Tax Appeals

Appeal of Bergner

4 B.T.A. 460

CourtUnited States Board of Tax Appeals

DecidedJuly 28, 1926

DocketDocket No. 5546

StatusPublished

Cited by1 cases

This text of 4 B.T.A. 460 (Appeal of Bergner) is published on Counsel Stack Legal Research, covering United States Board of Tax Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Appeal of Bergner, 4 B.T.A. 460 (bta 1926).

Pincite

Opinion

[461]*461OPINION.

MoRRis:

The only question presented to us for consideration is the basis for depreciation allowances for the taxable years in question, both parties agreeing that 2 per cent is a reasonable rate.

Through the use of the original contractor’s records of material and labor used in the erection of the building, the taxpayer has established the March 1, 1913, replacement cost, using material and labor prices on that date. It contends that this cost, depreciated from the date of the completion of the building in 1906 to March 1, 1913, should be taken as the basis for computing its depreciation deductions for the taxable years in question.

We have heretofore held that replacement cost as of March 1, 1913, even if properly depreciated, does not necessarily prove the fair market value as of that date. Appeal of Kinsman Transit Co., 1 B. T. A. 552; Appeal of Valley Steamship Co., 1 B. T. A. 1107; Appeal of Rockford Malleable Iron Works, 2 B. T. A. 817; Appeal of Chicago Railway Equipment Co., 4 B. T. A. 452.

The deficiencies are $527.18 for 1919 and $384.86 for 1920. Order will be entered accordingly.

Free access — add to your briefcase to read the full text and ask questions with AI

[461]*461OPINION.

MoRRis:

The only question presented to us for consideration is the basis for depreciation allowances for the taxable years in question, both parties agreeing that 2 per cent is a reasonable rate.

Through the use of the original contractor’s records of material and labor used in the erection of the building, the taxpayer has established the March 1, 1913, replacement cost, using material and labor prices on that date. It contends that this cost, depreciated from the date of the completion of the building in 1906 to March 1, 1913, should be taken as the basis for computing its depreciation deductions for the taxable years in question.

We have heretofore held that replacement cost as of March 1, 1913, even if properly depreciated, does not necessarily prove the fair market value as of that date. Appeal of Kinsman Transit Co., 1 B. T. A. 552; Appeal of Valley Steamship Co., 1 B. T. A. 1107; Appeal of Rockford Malleable Iron Works, 2 B. T. A. 817; Appeal of Chicago Railway Equipment Co., 4 B. T. A. 452.

The deficiencies are $527.18 for 1919 and $384.86 for 1920. Order will be entered accordingly.

Cite This Page — Counsel Stack

Bluebook (online)

4 B.T.A. 460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/appeal-of-bergner-bta-1926.

Opinion

Related

Cite This Page — Counsel Stack