Pierce Butler, Burnet v. Niagara Falls Brewing Company…
“ The government argues that obsolescence is the state of becoming obsolete, that property is obsolete when it is no longer useful for the purpose for which it was acquired, and cannot be used for any other purpose, and that obsolescence begins only when there is a reasonable certainty that the property will become obsolete. ”
Pierce Butler, Burnet v. Niagara Falls Brewing Company…
“ Obsolescence may arise as the result of laws regulating or forbidding the particular use of the property as well as from changes in the art, the shifting of business centers, loss of trade, inadequacy, or other causes.We are here concerned with the meaning of obsolescence as used in the above-quoted clause of the taxing act. Clearly the statute contemplates that, where warranted by the facts, the taxpayer shall have the benefit of, and in making his return may deduct in each year, a reasonable allowance to cover obsolescence of the tangible property. ”
Pierce Butler, Burnet v. Niagara Falls Brewing Company…
“ There is no hard and fast rule, as suggested by the government, that a taxpayer must show that his property will be scrapped or cease to be used or useful for any purpose, before any allowance may be made for obsolescence. ”
