Case Name: Appeals of M. C. STOCKBRIDGE, MRS. M. C. STOCKBRIDGE, MRS. ALICE D. HENDERSON, Executrix, S. H. HENDERSON, JR., MRS. S. H. HENDERSON, JR.
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1925-07-11
Citations: 2 B.T.A. 327
Docket Number: Docket Nos. 1866, 1867, 1875, 1916, 1917
Parties: Appeals of M. C. STOCKBRIDGE, MRS. M. C. STOCKBRIDGE, MRS. ALICE D. HENDERSON, Executrix, S. H. HENDERSON, JR., MRS. S. H. HENDERSON, JR.
Judges: Before Ivms and MoRRis.
Reporter: Reports of the United States Board of Tax Appeals
Volume: 2
Pages: 327–328

Head Matter:
Appeals of M. C. STOCKBRIDGE, MRS. M. C. STOCKBRIDGE, MRS. ALICE D. HENDERSON, Executrix, S. H. HENDERSON, JR., MRS. S. H. HENDERSON, JR.
Docket Nos. 1866, 1867, 1875, 1916, 1917.
Submitted May 20, 1925.
Decided July 11, 1925.
Lee I. Pa/rh, Esq., for the Commissioner.
Before Ivms and MoRRis.

Opinion:
OPINION.
Ivins:
We are satisfied by evidence submitted by the taxpayers-,, and uncontroverted, that depreciation should be allowed the partnership for the fiscal year ended June 30, 1919, in the amount of $29,698.73.
The item of $22,000 was not a proper deduction for the fiscal year in question. At the end of that year it represented not an accrued liability but a reserve.
During the fiscal year in question claims existed only in contemplation, not in fact. They did not arise and so accrue until after the-close of the fiscal year. Appeal of Consolidated Asphalt Co., 1 B. T. A. 79; Appeal of Henry Reubel, 1 B. T. A. 676; Appeal of Uvalde Co., 1 B. T. A. 932; Appeal of William J. Ostheimer, 1 B. T. A. 18.