Owen J. Roberts

“ The income tax acts have consistently allowed deduction for exhaustion, wear and tear, or obsolescence only in the case of 'property used in the trade or business.' The taxpayers in these cases could not, therefore, have claimed any deduction on this account for years prior to that in which the casualty occurred. For this reason they claim they may deduct upon the unadjusted basis,-that is,-cost. As the income tax laws call for accounting on an annual basis ”

“ The Commissioner allowed only value at date of destruction. The Board of Tax Appeals held with the taxpayers but the Circuit Court of Appeals reversed the Board's ruling.
Decision in No. 180 is governed by the Revenue Act of 1934; [2] in No. ”