Magnus Beck Brewing Co. v. Commissioner
United States Board of Tax Appeals
Where a timely written contract of petitioner provides that payments be made thereunder on account of indebtedness existing prior to April 30, 1936, on a basis necessarily requiring the use therein of "earnings and profits of the taxable year", if such existed, and petitioner made the required payments therefrom in 1936, held, in computing its surtax on undistributed profits, for 1936, petitioner is entitled to deduct those payments.
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Where a timely written contract of petitioner provides that payments be made thereunder on account of indebtedness existing prior to April 30, 1936, on a basis necessarily requiring the use therein of "earnings and profits of the taxable year", if such existed, and petitioner made the required payments therefrom in 1936, held, in computing its surtax on undistributed profits, for 1936, petitioner is entitled to deduct those payments. Sec. 26(c)(2), Revenue Act of 1936. Saginaw & Manistee Lumber Co.,45 B.T.A. 780; Michigan Silica Co.,41 B.T.A. 511 (on appeal, C.C.A. 6th Cir.), followed.
1Opinion of the Court
MAGNUS BECK BREWING CO., INC., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Magnus Beck Brewing Co. v. Commissioner
Docket No. 102876.
United States Board of Tax Appeals
46 B.T.A. 78; 1942 BTA LEXIS 913;
January 14, 1942, Promulgated
Where a timely written contract of petitioner provides that payments be made thereunder on account of indebtedness existing prior to April 30, 1936, on a basis necessarily requiring the use therein of "earnings and profits of the taxable year", if such existed, and petitioner made the required payments therefrom in 1936, held, in computing its surtax on…
2Cases cited3 opinions
- Michigan Silica Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- Saginaw & Manistee Lumber Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Magnus Beck Brewing Co. v. CommissionerUnited States Board of Tax Appeals · 1942