Riley Stoker Corp. v. Commissioner
United States Board of Tax Appeals
1. Where an affiliation occurs to break up a taxable year into shorter taxable periods, neither of which is taxpayer's first or last accounting period, such periods are not to be treated as separate "taxable years," but taxpayer's income is to be determined upon the basis of a twelve-month period. 2. A net loss sustained by a corporation prior to affiliation may be applied against its net income for the succeeding taxable year to the extent that it has not been absorbed by…
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1. Where an affiliation occurs to break up a taxable year into shorter taxable periods, neither of which is taxpayer's first or last accounting period, such periods are not to be treated as separate "taxable years," but taxpayer's income is to be determined upon the basis of a twelve-month period. 2. A net loss sustained by a corporation prior to affiliation may be applied against its net income for the succeeding taxable year to the extent that it has not been absorbed by the income of the consolidated group for the year in which the loss was sustained.
1Opinion of the Court
opinion.
Goodkich:
Petitioner assails respondent’s determination of a deficiency in its income-tax liability for the year 1923 in the amount of $5,451.74, and contends that it has already overpaid that liability and is entitled to a refund. In general, there is at issue here the proper application to 1923 income, under section 204, Revenue Act of 1921, of net losses sustained by certain members of a group of affiliated corporations in the years 1921 and 1922. Specifically, petitioner complains that respondent has treated as a “ taxable year ” each of the two periods of the calendar year in…
2Cases cited2 opinions
- Woolford Realty Co. v. RoseSupreme Court of the United States · 1932
- Planters Cotton Oil Co. v. HopkinsSupreme Court of the United States · 1932
3Cited by8 opinions
- W. M. Ritter Lumber Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Frelbro Corp. v. CommissionerUnited States Tax Court · 1961
- Wolverine Petroleum Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Albert Leon & Son, Inc. v. CommissionerUnited States Board of Tax Appeals · 1933
- Frelbro Corp. v. CommissionerUnited States Tax Court · 1961
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