Re: Wabash Rebuilt War Emegency Hopper


Anthony Thompson <thompson@...>
 

Brian J Carlson wrote:
I recently acquired a Wabash steel-sided WW2 War emergency hopper. I was
surprised the car has a NEW date of 5-59. Apparently the Wabash considered
them new cars for accounting purposes when they were resided. I thought
this practice was no longer allowed after the early 1950's.
It was certainly allowed. What was DISallowed was the previous tax practice of treating the work as "repair," when in fact a like-new car was created: thus the work had to be re-capitalized, not written off as repairs.
This removed much of the tax advantage of rebuilding, and it's true that many roads cut way back on, or eliminated, rebuilding of the type that extensively renewed the car.

Tony Thompson Editor, Signature Press, Berkeley, CA
2906 Forest Ave., Berkeley, CA 94705 www.signaturepress.com
(510) 540-6538; fax, (510) 540-1937; e-mail, thompson@...
Publishers of books on railroad history

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