E. W. Williams Publications, Inc. v. Commissioner
United States Tax Court
Petitioner commenced publishing a new trade magazine in 1938 from which it derives advertising and subscription income. Its advertising income for 1945 was abnormal in amount. It claimed relief from excess profits tax under section 721(a)(2)(C), Internal Revenue Code of 1939, on the ground that its advertising income was a separate class of income resulting from research and development of tangible property.
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Petitioner commenced publishing a new trade magazine in 1938 from which it derives advertising and subscription income. Its advertising income for 1945 was abnormal in amount. It claimed relief from excess profits tax under section 721(a)(2)(C), Internal Revenue Code of 1939, on the ground that its advertising income was a separate class of income resulting from research and development of tangible property. Held: Assuming that petitioner had a class of income as described in section 721(a)(2)(C) and that petitioner established the amount of net abnormal income derived therefrom, petitioner…
1Opinion of the Court
OPINION.
Arundell, Judge:
Petitioner seeks relief from excess profits tax for 1945 under the provisions of section 721 of the 1939 Code which relate to abnormalities in income in the taxable period.
Section 721 is designed to afford relief to taxpayers who receive income in the taxable year which is inherently abnormal in character or in amount. W. B. Knight Machinery Co., 6 T. C. 519, 529. Abnormal income, as defined in section 721 (a) (1), means “income of any class includible in the gross income of the taxpayer for any taxable year * * * if it is abnormal for the taxpayer to derive income of…
2Cases cited9 opinions
- Geyer, Cornell & Newell, Inc. v. CommissionerUnited States Tax Court · 1946
- W. B. Knight Machinery Co. v. CommissionerUnited States Tax Court · 1946
- Soabar Co. v. CommissionerUnited States Tax Court · 1946
- Ramsey Accessories Mfg. Corp. v. CommissionerUnited States Tax Court · 1948
- Producers Crop Improv. Asso. v. CommissionerUnited States Tax Court · 1946
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3Cited by1 opinion
- E. W. Williams Publications, Inc. v. CommissionerUnited States Tax Court · 1955