Robert G. Tomlinson, Etc. v. Commissioner of Internal Revenue

Before BARNES and KOELSCH, Circuit Judges, and CRARY, District Judge.

Having carefully and thoughtfully reviewed the decision of the Tax Court ( 58 T.C. 570 (1972)) sustaining the Commissioner’s determination of deficiencies in Taxpayers’ income taxes, we conclude that the factual findings made by the Tax Court are supported by substantial evidence and that the principles of law it applied to those facts were pertinent and correct, and that its decision should be affirmed.

Our comments will be brief. The facts, detailed in the Tax Court opinion, will not be repeated. Suffice to say that the dispute centers upon Taxpayers’ tax treatment of certain property comprising part of two separate insurance brokerage firms that they purchased — the one a partnership known as Schmeer Insurance Agency, and the other a corporation known as Schmeer Insurance Agency, Inc.

I. The Schmeer Partnership Asset

Although Taxpayers do not renew their contention, unsuccessfully urged in the Tax Court, that they are entitled to a depreciation deduction under 26 U.S.C. § 167 for “insurance expirations” belonging to the partnership, we nevertheless note that the basis for the ruling was the Tax…