L. A. Wells Constr. Co. v. Commissioner
United States Board of Tax Appeals
1. The petitioner is a contractor and files its income tax returns on the calendar year basis. Some contracts are begun and completed within the taxable years. Others are begun in one taxable year and completed in the next. In keeping its books and filing its income tax returns, it computes income on the basis of completed contracts.
Read the full summary
1. The petitioner is a contractor and files its income tax returns on the calendar year basis. Some contracts are begun and completed within the taxable years. Others are begun in one taxable year and completed in the next. In keeping its books and filing its income tax returns, it computes income on the basis of completed contracts. Held, that it may not take a deduction in the taxable year 1937, as a reserve for loss, of an amount estimated as the loss sustained in that year on a contract begun in that year and completed in 1938. 2. In 1937 petitioner purchased for $200 a dredge that had…
1Opinion of the Court
*305OPINION.
Turner :
The petitioner contends that it kept its books and filed its income tax returns on the accrual basis; that the Buffalo contract, which did not contemplate or require in excess of twelve months for *306completion, was not a “long-term” contract as defined by the respondent’s regulations, and that therefore the deduction of $61,031.40 taken in its 1937 return as a reserve for loss should be allowed in order to clearly reflect its income. The respondent contends that, since the petitioner has consistently reported its taxable income from contracts begun in one year and completed in…
2Cited by15 opinions
- Peninsula Steel Products & Equipment Co. v. CommissionerUnited States Tax Court · 1982
- Sam W. Emerson Co. v. CommissionerUnited States Tax Court · 1962
- Hamilton Industries, Inc. v. CommissionerUnited States Tax Court · 1991
- Daley v. United StatesCourt of Appeals for the Ninth Circuit · 1957
- Bloomfield Steamship Co. v. CommissionerUnited States Tax Court · 1959
10 more not listed; retrieve them via the Exa API.