Pasadena City Lines, Inc. v. Comm'r of Internal Revenue

9 Citing cases

  1. Tele-Commc'ns, Inc. v. Comm'r of Internal Revenue

    95 T.C. 36 (U.S.T.C. 1990)   Cited 14 times

    HELD FURTHER, when a business is conducted pursuant to a de facto monopolistic franchise granted it by a governmental body and it has no bona fide competition, it cannot have any goodwill separate and distinct from the value of its monopolistic franchise. Pasadena City Lines, Inc. v. Commissioner, 23 T.C. 34 (1954), followed. Edward C. Rustigan, Joseph R. Goeke, Jedd S. Palmer, Barry Gassman, Roger J. Jones, and William A. Schmalzl, for the petitioner.

  2.  Chronicle Publ'g Co. v. Comm'r of Internal Revenue

    67 T.C. 964 (U.S.T.C. 1977)   Cited 3 times

    None of the franchises has ever been renewed, and the franchising authorities have no practice or custom of granting renewals. See Gerrit Van De Steeg, 60 T.C. at 27; Pasadena City Lines, Inc., 23 T.C. 34, 38—39 (1954). If petitioner's subsidiaries decide to attempt to continue their CATV operations, they will have to obtain new franchises which meet the FCC requirements, and this will require them to file applications with the franchising authorities in competition with other applicants.

  3. Van De Steeg v. Comm'r of Internal Revenue

    60 T.C. 17 (U.S.T.C. 1973)   Cited 2 times

    The law is clear that in determining depreciation a taxpayer is entitled to rely on the facts as they existed at the time his tax return is required to be filed. See Pasadena City Lines, Inc., 23 T.C. 34, 39 (1954). When the petitioners' tax returns for 1967 and 1968 were filed the effective termination date of their purchased class I milk base was December 31, 1969.

  4. Toledo TV Cable Co. v. Comm'r of Internal Revenue

    55 T.C. 1107 (U.S.T.C. 1971)

    The determination is to be made in accordance with the facts known or reasonably anticipated at the end of the period for which the return is filed. New England Tank Industries, Inc., 50 T.C. 771, 781 (1968), affirmed per curiam 413 F.2d 1038 (C.A. 1, 1969); Pasadena City Lines, Inc., 23 T.C. 34, 39 (1954). The petitioners have the burden of proving the respondent's determination erroneous.

  5. Dustin v. Comm'r of Internal Revenue

    53 T.C. 491 (U.S.T.C. 1969)   Cited 23 times

    This Court has consistently held that the costs of acquiring licenses and franchises having useful lives in excess of 1 year are not deductible as business expenses but should be treated as capital expenditures. Morris Nachman, 12 T.C. 1204, affd. 191 F.2d 934; Tube Bar, Inc., 15 T.C. 922; Pasadena City Lines, Inc., 23 T.C. 34; Vermont Transit Co., 19 T.C. 1040, affd. 218 F.2d 468, certiorari denied 349 U.S. 945. We think the facts and circumstances of the instant case require a similar conclusion, notwithstanding the license here sought had not, as of the date of the hearing, as yet been granted. * * *

  6. Hoek v. Comm'r of Internal Revenue

    51 T.C. 203 (U.S.T.C. 1968)

    We hold that a portion of the purchase price paid by petitioners should be allocated to the right to base, whether regular or extra. Cf. Wood County Telephone Co., 51 T.C. 72 (1968); Thompson v. Commissioner, 205 F.2d 73 (C.A. 3, 1953); John W. Walter, Inc. 23 T.C. 550 (1954); Pasadena City Lines, Inc., 23 T.C. 34 (1954). We think that Floyd D. Akers, 6 T.C. 693 (1946), is distinguishable for the reasons set forth in Estate of Tony Cordeiro, supra.

  7. Lots, Inc. v. Comm'r of Internal Revenue

    49 T.C. 541 (U.S.T.C. 1968)

    The case is significant here chiefly for the purpose of comparison. The cost of acquiring the city's approval of the subdivision plat here was like the cost of obtaining a liquor license from the City of Jersey City, N.J., Tube Bar, Inc., 15 T.C. 922; the cost of acquiring the franchise for a motorcoach system in the city of Pasadena, Calif., Pasadena City Lines, Inc., 23 T.C. 34; and the cost of obtaining the privilege to practice osteopathy as a staff member of the hospital staff of Albuquerque, N. Mex., S. M. Howard, 39 T.C. 833, all of which were held to be capital expenditures. We think it is clear that had Lots, Inc., donated a part of its land for park purposes the value of the land donated would be a part of the capital investment in the entire subdivision and would not have been deductible as a business expense.

  8. Westinghouse Broad. Co. v. Comm'r of Internal Revenue

    36 T.C. 912 (U.S.T.C. 1961)   Cited 25 times

    This Court has held that, for purposes of depreciation, determination as to probable useful life must be based upon the ‘facts known or estimates made at the time a return is filed.’ Philadelphia Quartz Co., 13 B.T.A. 1146, 1148 (1928) (specifically overruling on this point, Thomas Coal Co., 10 B.T.A. 639 (1928)); Leonard Refineries, Inc., supra at 1007, 1011; Morganton Full Fashioned Hosiery Co., 14 T.C. 695, 703 (1950); Pasadena City Lines, Inc., 23 T.C. 34, 39 (1954). Petitioner's claim for a 31-month useful life for depreciation in 1953 and 1954 is based on the fact that the contract remained in effect that long after petitioner purchased it.

  9. Radio Station Wbir, Inc. v. Comm'r of Internal Revenue

    31 T.C. 803 (U.S.T.C. 1959)   Cited 26 times

    This Court has consistently held that the costs of acquiring licenses and franchises having useful lives in excess of 1 year are not deductible as business expenses but should be treated as capital expenditures. Morris Nachman, 12 T.C. 1204, affd. 191 F.2d 934; Tube Bar, Inc., 15 T.C. 922; Pasadena City Lines, Inc., 23 T.C. 34; Vermont Transit Co., 19 T.C. 1040, affd. 218 F.2d 468, certiorari denied 349 U.S. 945. We think the facts and circumstances of the instant case require a similar conclusion, notwithstanding the license here sought had not, as of the date of the hearing, as yet been granted.