Carbo Petroleum Co. v. Commissioner
United States Board of Tax Appeals
1. Invested capital should be adjusted, on account of income and profits-tax liability for previous years, in accordance with decision in Russel Wheel & Foundry Co.,3 B.T.A. 1168. 2. Invested capital may not be reduced by dividends paid in excess of current earnings to the extent that the amount of available earnings is affected by the deduction of a tentative tax.
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1. Invested capital should be adjusted, on account of income and profits-tax liability for previous years, in accordance with decision in Russel Wheel & Foundry Co.,3 B.T.A. 1168. 2. Invested capital may not be reduced by dividends paid in excess of current earnings to the extent that the amount of available earnings is affected by the deduction of a tentative tax. L. S. Ayers & Co., B.T.A. 1135. 3. Reserves for depreciation in years prior to 1918 found to be excessive, and on the facts held that the amount of $6,441.46 should be restored to surplus for the purpose of computing invested…
1Opinion of the Court
CARBO PETROLEUM CO., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Carbo Petroleum Co. v. Commissioner
Docket No. 9524.
United States Board of Tax Appeals
12 B.T.A. 166; 1928 BTA LEXIS 3588;
May 28, 1928, Promulgated
1. Invested capital should be adjusted, on account of income and profits-tax liability for previous years, in accordance with decision in Russel Wheel & Foundry Co.,3 B.T.A. 1168.
2. Invested capital may not be reduced by dividends paid in excess of current earnings to the extent that the amount of available earnings is affected by the deduction of a tentative tax. L. S.…
2Cases cited11 opinions
- United States v. LudeySupreme Court of the United States · 1927
- Von Baumbach v. Sargent Land Co.Supreme Court of the United States · 1917
- Stratton's Independence, Ltd. v. HowbertSupreme Court of the United States · 1913
- Willcuts v. Milton Dairy Co.Supreme Court of the United States · 1927
- Komada & Co. v. United StatesSupreme Court of the United States · 1910
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