TAXATION - INCOME TAXES - DEDUCTION FOR UNCOMPENSATED DAMAGES TO NON-BUSINESS PROPERTY

Authors

Anthony L. Dividio, University of Michigan Law SchoolFollow

Abstract

Several years prior to 1934, the taxpayer purchased a pleasure automobile for $1,825. Its value in 1934 was $225; after a collision its value was $190. The Circuit Court of Appeals for the Second Circuit upheld the taxpayer's contention that inasmuch as a taxpayer is not allowed an annual deduction for depreciation on non-business property, the original cost of such property constituted the basis for measuring the "uncompensated loss" allowed as a deduction for income tax purposes under section 113 (b) (1) (B) of the Revenue Act of 1934. Held, the decision of the Circuit Court of Appeals should be reversed and only the actual damages of $35 allowed as a deduction. Helvering v. Owens, (U.S. 1939) 59 S. Ct. 260.

Recommended Citation

Anthony L. Dividio, TAXATION - INCOME TAXES - DEDUCTION FOR UNCOMPENSATED DAMAGES TO NON-BUSINESS PROPERTY, 37 Mich. L. Rev. 816 (1939).
Available at: https://repository.law.umich.edu/mlr/vol37/iss5/22