Johnson County Realty Co. v. Commissioner
United States Board of Tax Appeals
On Dember 28, 1935, the petitioner, which reports its income by the cash receipts and disbursements method, purchased real estate located in the State of Iowa. Under a provision of the Iowa Code the lien for estate taxes attaches in the case of a vendee on December 31 of each year. In 1936 the petitioner paid the 1935 taxes on the property purchased. Held, that it is
1Opinion of the Court
*123OPINION.
ToRner : Among the deductions allowed by the statute for the purpose of determining net income is the deduction for taxes, section 23 (c) of the Revenue Act of 1936, but it has been held that in the case of a purchaser of real estate, taxes outstanding against the property at the time of purchase do not as to such purchaser retain the character of taxes, but constitute a part of the cost of the property. Merchants Bank Building Co. v. Helvering, 84 Fed. (2d) 478; Helvering v. Missouri State Life Insurance Co., 78 Fed. (2d) 778; Lifson v. Commissioner, 98 Fed. (2d) 508; Walsh-McGuire…
2Cases cited5 opinions
- Clinton v. ShugartSupreme Court of Iowa · 1904
- Nunngesser v. HartSupreme Court of Iowa · 1904
- Gates v. WirthSupreme Court of Iowa · 1917
- Iowa Wesleyan College v. KnightSupreme Court of Iowa · 1929
- Moore v. Central National Bank & Trust Co.Supreme Court of Iowa · 1930
3Cited by2 opinions
- Helvering v. Johnson County Realty Co.Court of Appeals for the Eighth Circuit · 1942
- Johnson County Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1941