Anchor Co. v. Commissioner of Internal Revenue, 2971.
| Decision Date | 16 June 1930 |
| Docket Number | No. 2971.,2971. |
| Citation | 42 F.2d 99 |
| Parties | ANCHOR CO., Inc., v. COMMISSIONER OF INTERNAL REVENUE. |
| Court | U.S. Court of Appeals — Fourth Circuit |
C. F. Cocke, of Roanoke, Va., and Theodore B. Benson, of Washington, D. C., for petitioner.
John H. McEvers, Sp. Asst. to the Atty. Gen. (G. A. Youngquist, Asst. Atty. Gen., J. Louis Monarch, Sp. Asst. to the Atty. Gen., and C. M. Charest, Gen. Counsel, Bureau of Internal Revenue, and Joe S. Franklin, Sp. Atty., Bureau of Internal Revenue, both of Washington, D. C., on the brief), for respondent.
Before PARKER, Circuit Judge, and GRONER and SOPER, District Judges.
This is an appeal from an order of the Board of Tax Appeals affirming a deficiency assessment of income taxes for the year 1924. In that year the taxpayer sold an office building in Roanoke, Va. For the purpose of determining the gain or profit derived from the sale, this property was valued as of March 1, 1913, in the income tax return of the taxpayer at $205,000. The Commissioner of Internal Revenue valued it as of that date at $110,112, and this valuation was approved by the Board of Tax Appeals.
It is admitted that the real estate upon which the building was erected was acquired in 1909 for $25,535.56; that a three-story building was erected thereon prior to March 1, 1913, at a cost of $82,198.84; and that, in his determination of the value of the property as of March 1, 1913, the Commissioner valued the land at $29,659.96 and the building at $80,452.14. The taxpayer complains that the Board approved this valuation instead of adopting the testimony as to market value given by a witness Franklin, who placed the value of the property as of March 1, 1913, at from $195,000 to $210,000. It appears, however, that the valuation of Franklin was based in large part upon his estimate of the cost of reproduction of the building, and that he admitted that this estimate would apply to construction in 1910 as well as in 1913. It was, of course, for the Board to say what weight it would give this testimony; and certainly it was entitled to no great weight when based upon an estimate which far exceeded the actual cost of construction.
The fair market value of the property as of March 1, 1913, was peculiarly a question of fact for the determination of the Board. It had before it, not only the opinion evidence relied upon by the taxpayer, but also the facts as to the cost of the property, the cost of the improvements placed thereon, the rate of depreciation, and the valuation fixed by the Commissioner of Internal Revenue, the last of which was prima facie correct. Brooks v. Commissioner (C. C. A. 4th) 35 F.(2d) 178; Wickwire v. Reinecke, 275 U. S. 101, 105, 48 S. Ct. 43, 72 L. Ed. 184. What weight was to be given to these various matters in determining the value as of March 1, 1913, was for the Board to decide; and there is nothing to show that it abused its discretion or proceeded upon...
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