Case Name: Modesto Lumber Co., Petitioner, v. Commissioner of Internal Revenue, Respondent
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1926-11-23
Citations: 5 B.T.A. 598
Docket Number: Docket No. 3971
Parties: Modesto Lumber Co., Petitioner, v. Commissioner of Internal Revenue, Respondent.
Judges: 
Reporter: Reports of the United States Board of Tax Appeals
Volume: 5
Pages: 598–600

Head Matter:
Modesto Lumber Co., Petitioner, v. Commissioner of Internal Revenue, Respondent.
Docket No. 3971.
Decided November 23, 1926.
J. M. Walthall, Esg., for the petitioner.
George E. Adams, Esg., for the respondent.

Opinion:
OPINION.
Moeeis:
There is no question in our minds but that some of the expenditures made by the petitioner in the taxable year and disallowed as deductions by the Commissioner were for ordinary and necessary repairs, the cost of which is deductible. Appeal of Illinois Merchants Trust Co., 4 B. T. A. 103. On the other hand, certain of the expenditures were for replacements, alterations and improvements, which are additions to capital investment the cost of which should not be applied against current earnings. Appeal of Blanche Burbank, 3 B. T. A. 1118. See also Appeal of Simmons & Hammond Mfg. Co., 1 B. T. A. 803. In the absence, however, of any segregation in the record of the costs disallowed by the Commissioner, we are unable to determine what amounts are deductible and what amounts should be added to capital investment. The determination of the Commissioner is therefore approved.
Judgment will be entered for the Commissioner.