# Twin Disc Clutch Co. v. Commissioner

> United States Board of Tax Appeals · November 11, 1925 · 2 B.T.A. 1327

URL: https://www.frixlaw.com/law-library/cases/4490587

## Case

- **Full name:** APPEAL OF TWIN DISC CLUTCH CO.
- **Court:** United States Board of Tax Appeals
- **Decided:** November 11, 1925
- **Citations:** 2 B.T.A. 1327; 1925 BTA LEXIS 2092
- **Precedential status:** Published
- **Opinion:** Opinion of the court
- **Judges:** Makquette, Morris
- **Cited by:** 1 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/4490587

## Opinion text

This appeal is from the determination of a deficiency in income and profits taxes for the year 1919 in the amount of $99.28.
Two questions are involved: Whether the taxpayer is entitled to deduct in 1919 depreciation on a patent application, patent for which did not issue until 1921; and whether the taxpayer is entitled to deduct the Wisconsin income tax as an accrued liability of 1919 ?
The appeal was submitted on a stipulation of facts.
FINDINGS OF FACT.
The taxpayer is a Wisconsin corporation, with its office located at Hacine. It was organized in September, 1918, with authorized common stock of 1,500 shares of par value of $150,000, of which 200 shares were issued for organization expenses.
On September 30, 1918, the taxpayer acquired from Thos. L. Fewick, the inventor, patent application No. 220147 and issued *1328 therefor 400 shares of its common stock having a par value of $40,000. The patent was issued September 13, 1921. In October, 1919, the taxpayer’s common stock to the amount of 600 shares was sold for $36,325 paid in cash and $10,850 paid by interest-bearing notes.
The State of Wisconsin normal income tax shown on the 1920 tax roll, assessed on the net income of the taxpayer for 1919, amounted to $126.84. The taxpayer paid a personal-property tax in Wisconsin during 1920 in an amount in excess of said assessment of $126.84, and the personal-property tax paid was credited against said assessment of income tax in accordance with the income-tax law of the State of Wisconsin.
DECISION.
The determination of the Commissioner is approved.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/4490587. Public record. Not legal advice.