The opinion
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
*3629 William Cogger, Esq., for the petitioner.
Ellis W. Manning, Esq., for the Commissioner.
PHILLIPS
*1287 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
*3630 *1288 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.