Irby v. Commissioner
United States Tax Court
1. Petitioner was a subcontractor in the laying of gas pipelines. He obtained most of his construction equipment under conditional sale contracts with dealers. Held, that installment payments made under such conditional sale contracts are not deductible as "rentals," but constitute capital expenditures representing part of the cost of such equipment.
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1. Petitioner was a subcontractor in the laying of gas pipelines. He obtained most of his construction equipment under conditional sale contracts with dealers. Held, that installment payments made under such conditional sale contracts are not deductible as "rentals," but constitute capital expenditures representing part of the cost of such equipment. Respondent's allowances for depreciation on such equipment, and his treatment of gains derived from the sale of certain of the equipment, are approved. 2. Petitioner had no bookkeeping system and no books of account which reflected any particular…
1Opinion of the Court
Pierce, Judge:
Eespondent determined deficiencies in income tax, and additions to tax, as follows:
_Additions to tax_
Year Deficiency Sec. 291 (a) Sec. 294 (d) 0) (A) Sec. 294 d) («)
1952_ $22, 260. 63 $7, 349. 58 $4, 272. 70 $2, 848. 45
1953__ 785.38 196.35 63.39 42. 26
As regards the year 1954, the respondent did not determine a deficiency, but rather an over assessment of $28,345.70; and he also determined a net operating loss for said year, which he carried back and allowed as a deduction for the year 1952. In the absence of a determination of deficiency for the year 1954, the tax liability for…
2Cases cited12 opinions
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- Acker v. CommissionerUnited States Tax Court · 1956
- Fuller v. CommissionerUnited States Tax Court · 1953
- Walter H. Kaltreider and Irene C. Kaltreider v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Fred N. Acker v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1958
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3Cited by18 opinions
- Heuer v. CommissionerUnited States Tax Court · 1959
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- Bryan v. CommissionerUnited States Tax Court · 1959
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- Gerber v. CommissionerUnited States Tax Court · 1959
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