Los Angeles Towel Service Co. v. Commissioner

Board of Tax Appeals

Los Angeles Towel Service Co. v. Commissioner

9 B.T.A. 665

CourtUnited States Board of Tax Appeals

DecidedDecember 19, 1927

DocketDocket Nos. 8866, 23391

StatusPublished

Cited by1 cases

This text of 9 B.T.A. 665 (Los Angeles Towel Service 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

Los Angeles Towel Service Co. v. Commissioner, 9 B.T.A. 665 (bta 1927).

Pincite

Opinion

Van Fossan:

Petitioner, a California corporation, appealed from determinations by the Commissioner of deficiencies of $1,163.76 for 1920, $440.32 for 1921, and $146.65 for 1922. The sole issue is the proper rate of depreciation on towel cabinets owned by petitioner.

FINDINGS OF FACT.

Petitioner manufactures and rents to customers various types of towel cabinets and supplies them with towels. Due to dampness, [666]*666hard usage, and other causes it is necessary frequently to make repairs of the cabinets, revarnish them, resilver the mirrors, and replace the glass knobs. Styles change frequently, rendering cabinets obsolete. The average useful life of a cabinet is not to exceed five years, and 20 per cent is a reasonable rate for depreciation, including obsolescence.

Judgment mil be entered on 15 days’ notice, vmder Bute 50.

Considered by Marquette and Phillips.

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