Lautz Marble Corp. v. Commissioner

APPEAL OF LAUTZ MARBLE CORPORATION.

Lautz Marble Corp. v. Commissioner

Docket No. 6674.

United States Board of Tax Appeals

5 B.T.A. 1287; 1927 BTA LEXIS 3629;

January 31, 1927, Promulgated

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William Cogger, Esq., for the petitioner.

Ellis W. Manning, Esq., for the Commissioner.

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PHILLIPS

PHILLIPS: Petitioner appeals from the determination by the Commissioner of a deficiency of $2,058.90 in income and profits tax for the calendar year 1919, arising from the disallowance of $4,282.11 of the depreciation claimed on buildings, machinery, furniture and fixtures, and tools.

FINDINGS OF FACT.

The petitioner is a corporation existing under the law of the State of New York, with its principal place of business in Buffalo. It was incorporated in November, 1918, with an authorized capital of $150,000.

Upon incorporation it acquired the real estate, machinery, furniture, tools and inventory of a bankrupt corporation, and issued therefor stock of the par value of $70,700, assuming a mortgage thereon of $46,800.

The Commissioner determined the fair market value of the depreciable tangible assets paid in to the taxpayer corporation and allowed depreciation on such values as follows:

	Amount.	Rate, per cent.
Buildings	$4,593.85	3
Machinery	8,448.85	20
Furniture and fixtures	433.99	10
Tools	726.86	5
Total	14,203.55

The fair market value of the buildings when acquired was $15,000 and of the tools, $2,185.30

Decision redetermining deficiency will be entered on 10 days' notice, under Rule 50.