Lawrence Y. S. Au and Wrona K. H. Au, Petitioners, v. Commissioner of Internal Revenue, Respondent, 330 F.2d 1008 (9th Cir. 1964)

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US Court of Appeals for the Ninth Circuit - 330 F.2d 1008 (9th Cir. 1964) April 24, 1964
Rehearing Denied June 8, 1964

Lawrence Y. S. Au, Honolulu, Hawaii, in pro. per. for appellant.

Louis F. Oberdorfer, Asst. Atty. Gen., Lee A. Jackson, David O. Walter, Stephen B. Wolfberg, and Herbert Goodwin, Attys., Dept. of Justice, Washington, D. C., for appellee.

Before CHAMBERS, KOELSCH and BROWNING, Circuit Judges.


The Tax Court held that the basis for depreciation of a nonbusiness property which the taxpayers transferred to a business partnership as part of their contribution was the fair market value of such property at the time of such transaction (40 T.C. 264). This conclusion finds support in and is consistent with the doctrine implied in Helvering v. Owens, 305 U.S. 468, 59 S. Ct. 260, 83 L. Ed. 292 (1939).

The judgment of the Tax Court in determining a deficiency is affirmed.