South Texas Lumber Co. v. Commissioner
United States Tax Court
Petitioner, a corporation which kept its books and filed its income and excess profits tax returns on the accrual basis, elected to compute and report the profit on installment sales of real estate made by it on the installment basis in accordance with section 44 (b), I. R. C.Held, petitioner's anticipated and unreported income from installment sales as of the beginning of the years 1941, 1942, and 1943 is not includible as part of its "accumulated earnings and profits" in…
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Petitioner, a corporation which kept its books and filed its income and excess profits tax returns on the accrual basis, elected to compute and report the profit on installment sales of real estate made by it on the installment basis in accordance with section 44 (b), I. R. C.Held, petitioner's anticipated and unreported income from installment sales as of the beginning of the years 1941, 1942, and 1943 is not includible as part of its "accumulated earnings and profits" in arriving at its equity invested capital within the meaning of section 718 (a) (4), I. R. C.
1Opinion of the Court
OPINION.
HaRlan, Judge:
Since the hearing of this case and since the filing of petitioner’s brief a case, undistinguishable on its relevant facts from the case at bar, has been decided by this Court. On July 11, 1946, this Court decided, in Kimbrell's Home Furnishings, Inc., 7 T. C. 339, that a corporation engaged in the sale of furniture at retail on the installment basis could not, in the computation of its equity invested capital, include unrealized profits as represented by unpaid installment notes received from the purchasers at the time of the sale. All of the questions raised by both the…
2Cases cited2 opinions
- Kimbrell's Home Furnishings, Inc. v. CommissionerUnited States Tax Court · 1946
- Federal Union Ins. Co. v. CommissionerUnited States Tax Court · 1945
3Cited by1 opinion
- South Texas Lumber Co. v. CommissionerUnited States Tax Court · 1946