1924 BTA LEXIS 217 | B.T.A. | 1924
Lead Opinion
With reference to the amount of the deduction to be charged off on account of the wear, tear, and exhaustion of de-preciable assets, the statute provides that a reasonable deduction therefor may be taken. It is a question of fact in each particular case as to what is a reasonable deduction. All facts which affect the useful life of the property should be presented to the Board in order that it may determine the question. The taxpayer, however, has submitted no evidence which would enable the Board to reach a conclusion that the determination of the Commissioner was not correct.
On the question of the deduction claimed by the taxpayer on account of the expenditure incurred in installing fireproof doors and with respect to the expenditure of $10,890.81 in 1920 for painting and decorating certain rooms, no evidence was introduced by the taxpayer to show whether such expenditures were capital or current.
Upon the record, the Board can reach no other conclusion than that the determination of the Commissioner must be approved. It is true that a stipulation of facts was filed, but this sets out no facts upon which the Board could base a conclusion. Essential facts relating to and affecting the life of the property and whether the expenditures referred to were capital expenditures or ordinary and necessary expenses were not presented.
At the hearing the taxpayer’s representative offered to substantiate the allegations of the petition by ex parte affidavits and letters.
In view of the foregoing it is the opinion of the Board that the determination of the Commissioner should be approved.