DocketNumber: Docket Nos. 33532, 42613
Citation Numbers: 22 B.T.A. 1236
Judges: Arundell
Filed Date: 4/20/1931
Status: Precedential
Modified Date: 10/17/2022
The major difference between the parties revolves around the basis for allowing depreciation on the leasehold. Cost is the basis, but as stock was issued rather than cash paid, the value of the stock at the time must be determined. The only witness testifying on this matter was produced by the petitioner and he was emphatic that the stock was worth par and that the leasehold was of a value at least equal to the par value of the stock, viz, $56,250. This testimony was not weakened on cross-examination and must prevail unless for other reasons the cost must be placed at a different figure. The respondent contends that the contract described in the findings of fact provided that the stock was to be issued not only for the securing of a leasehold, but also for services to be rendered by Merges in connection with the organization and financing of the
The amounts shown in our findings of fact to have been spent for traveling and other expenses are deductible as ordinary and necessary business expenses in the years expended. No evidence was offered on other expense items claimed as deductions. The respondent’s disallowance of such items is sustained.
Decision will be entered under Bule 50.