Virginian Hotel Corporation of Lynchburg v. Helvering’s Empirical Analysis

Citation profile

112 federal appellate · 9 district · 6 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 221 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““But it is said that ‘allowed’ unlike ‘allowable’, connotes the receipt of a tax benefit. The argument is that though depreciation in excess of an ‘allowable’ amount is claimed by the taxpayer and not disallowed by the Commissioner, it is nevertheless not ‘allowed’ if the deductions other than depreciation are sufficient to produce a loss for the year* in question. ‘Allowed’ in this setting plainly has the effect of requiring a reduction of the depreciation basis by an amount which is in excess of depreciation properly deductible. We do not agree, however, with the contention that such a reduction must be made only to the extent that the deduction for depreciation has resulted in a tax benefit. * * * We find no suggestion that ‘allowed’, as distinguished from ‘allowable’, depreciation is confined to those deductions which result in tax benefits. ‘Allowed’ connotes a grant. Under our federal tax system there is no machinery for formal allowances of deductions from gross income. Deductions stand if the Commissioner takes no steps to challenge them. Income tax returns entail numerous deductions. If the deductions are not challenged, they certainly are ‘allowed’ since tax liability is then determined on the basis of the returns.” 6”

   4 later decisions quote this exact passage · from the majority
   e.g. F. A. Gillespie & Sons Co. v. Commissioner · Mid-Century Ltd. of America v. Hofferbert

2. ““ * * * The basis upon which depreciation is to be ‘allowed’ is the cost of the property with proper adjustments for depreciation ‘to the extent allowed (but not less than the amount allowable) under this Act or prior income tax laws.’ That provision makes it plain that the depreciation basis is reduced by the amount ‘allowable’ each year whether or not it is claimed. * * * Moreover the basis must be reduced by that amount even though no tax benefit results from the use of depreciation .as a deduction. Wear and tearr do not wait cm net income. Nor can depreciation be .accumulated and held for use in that year in which it will bring the taxpayer the most tax benefit. Congress has elected to make .the year the unit of taxation. * * * Thus the amount ‘allowable’ must he taken each year. * * * ” (Italics ours.)”

   3 later decisions quote this exact passage · from the majority
   e.g. Commissioner v. Cleveland Adolph Mayer Realty Corp. · United States v. Hemme

3. ““. . . The basis upon which depreciation is to be ‘allowed’ is the cost of the property with proper adjustments for depreciation ‘to the extent allowed (but not less than the amount allowable) under this Act or prior income tax laws.’ That provision makes it plain that the depreciation basis is reduced by the amount ‘allowable’ each year whether or not it is claimed. . . . Moreover the basis must be reduced by that amount even though no tax benefit results from the use of depreciation as a deduction. Wear and tear do not wait on net income. Nor can depreciation be accumulated and held for use in that year in which it will bring the taxpayer the most tax benefit. Congress has elected to make the year the unit of tarnation. . . . Thus the amount ‘allowable? must be taken each year. . . .” (Italics ours.)”

   2 later decisions quote this exact passage · from the majority
   e.g. Cleveland Adolph Mayer Realty Corp. v. Commissioner · Empire Case Goods Co. v. Commissioner