The opinion of the court was delivered by: MCVICAR
This is an action to recover the sum of $1,170.28, with interest thereon from March 10, 1937, which amount represents income and excess profits taxes with interest thereon, which was paid by plaintiff to the defendant, Collector of Internal Revenue, on the above date. Jury trial was waived. The Court makes the following findings of fact and conclusions of law:
1.The Court finds the facts as contained in the Stipulation of Facts of the parties hereto, which is filed herewith and which, by reference, is made a part hereof.
2. Plaintiff stored in its garage the 18 taxicabs involved in this case July 1, 1931. They remained in storage until abandonment thereof by plaintiff November 30, 1935. For their preservation at the time of storage, plaintiff removed all water, gas, batteries and tries therefrom.
3. The taxicabs were stored on account of the general business condition in and about the City of Pittsburgh and the resultant non-demand for the use of said taxicabs. It was plaintiff's intention to use said taxicabs when the business condition would justify the use thereof.
4. Plaintiff abandoned the taxicabs stored, November 30, 1935, by reason of a new type of taxicab then planned and about to be manufactured which made the use of the stored taxicabs impracticable.
5. Depreciation in the amount of $9,925.71 was sustained on the eighteen taxicabs involved in this proceeding aliquotly spread between July 1, 1931 and November 30, 1935, based upon a remaining useful life from July 1, 1931 of four and five-twelfths years. The depreciation so computed represents a reasonable allowance thereof based upon the remaining useful life of these taxicabs while not in active use.
I. The applicable acts are the Revenue Act of 1928, c. 852, 45 Stat. 791; Revenue Act of 1932, c. 209, 47 Stat. 169; and Revenue Act of 1934, c. 277, 48 Stat. 680, § 23(l), 26 U.S.C.A. § 23(l).
II. The taxicabs involved were depreciable under said acts from July 1, 1931 to November 30, 1935, inclusive.
III. Plaintiff was not entitled to a deduction in its 1935 taxes by virtue of the abandonment November 30, 1935 ...