Hughes Coal Co. v. Commissioner

Board of Tax Appeals

Hughes Coal Co. v. Commissioner

8 B.T.A. 306, 1927 BTA LEXIS 2908

CourtUnited States Board of Tax Appeals

DecidedSeptember 27, 1927

DocketDocket No. 7142.

StatusPublished

Cited by1 cases

This text of 8 B.T.A. 306 (Hughes Coal Co. v. Commissioner) 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

Hughes Coal Co. v. Commissioner, 8 B.T.A. 306, 1927 BTA LEXIS 2908 (bta 1927).

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Opinion

[308]*308OPINION.

VaN FossaN:

Petitioner was a small coal company with a production of only 67,552 tons for the taxable year. Its president had served during 1917, 1918, and 1919 without salary. In 1920 it paid him $30,000. The Commissioner reduced this amount to $22,500. Petitioner’s president was also general manager of another and larger coal company and was paid a salary by it. He had various other business interests to which he gave some time and from which he received -compensation. The evidence is insufficient to prove that the action of the Commissioner was in error.

The second issue presented relates to the proper rates to be applied to certain of the corporation’s depreciable assets. In view of the evidence presented, we are of the opinion that the following rates [309]*309oí depreciation should be applied, as constituting a reasonable allowance for the exhaustion, wear and tear of the assets in question for the year 1920:

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The deficiency should be recomputed in accordance with this decision.

Judgment will be entered on 15 dags’ notice, under Rule 50.

Considered by MaRquette, Milliicen, and Phillips.

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[308]*308OPINION.

VaN FossaN:

Petitioner was a small coal company with a production of only 67,552 tons for the taxable year. Its president had served during 1917, 1918, and 1919 without salary. In 1920 it paid him $30,000. The Commissioner reduced this amount to $22,500. Petitioner’s president was also general manager of another and larger coal company and was paid a salary by it. He had various other business interests to which he gave some time and from which he received -compensation. The evidence is insufficient to prove that the action of the Commissioner was in error.

The second issue presented relates to the proper rates to be applied to certain of the corporation’s depreciable assets. In view of the evidence presented, we are of the opinion that the following rates [309]*309oí depreciation should be applied, as constituting a reasonable allowance for the exhaustion, wear and tear of the assets in question for the year 1920:

[[Image here]]

The deficiency should be recomputed in accordance with this decision.

Judgment will be entered on 15 dags’ notice, under Rule 50.

Considered by MaRquette, Milliicen, and Phillips.

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Bluebook (online)

8 B.T.A. 306, 1927 BTA LEXIS 2908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hughes-coal-co-v-commissioner-bta-1927.

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