Leo Kahn Furniture Co. v. Commissioner
United States Tax Court
Petitioner elected, pursuant to section 736 (a), Internal Revenue Code, to compute its income from installment sales for excess profits tax purposes upon the accrual basis but continued to compute its normal tax net income upon the installment basis under section 44 (a). Held: the amount of its deduction for contributions under section 23 (q) is limited to its net income computed on the accrual basis for excess profits tax purposes.
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Petitioner elected, pursuant to section 736 (a), Internal Revenue Code, to compute its income from installment sales for excess profits tax purposes upon the accrual basis but continued to compute its normal tax net income upon the installment basis under section 44 (a). Held: the amount of its deduction for contributions under section 23 (q) is limited to its net income computed on the accrual basis for excess profits tax purposes. The pertinent part of Treasury Regulations 112, section 35.736 (a)-3 is valid.
1Opinion of the Court
OPINION.
Leech, Judge:
This proceeding involves excess profits tax deficiencies for the years 1940, 1941, and 1942, in the respective amounts of $6,737.61, $1,690.93, and $2,182.39, not all of which is in controversy. The parties have stipulated as to all the issues raised by the pleadings except one issue of law, which is as follows:
Where petitioner elected, under section 736 (a) of the Internal Revenue Code, to compute its income from installment sales for excess profits tax purposes on the accrual basis, is the deduction for charitable contributions in the year 1942 limited to 5 per cent of…
2Cases cited5 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Gus Blass Co. v. CommissionerUnited States Tax Court · 1947
- West End Furniture Co. v. CommissionerUnited States Tax Court · 1946
- Basalt Rock Co. v. CommissionerUnited States Tax Court · 1948
- Markson Bros. v. CommissionerUnited States Tax Court · 1950
3Cited by3 opinions
- Carroll Furniture Co. v. CommissionerUnited States Tax Court · 1950
- Carroll Furniture Co. v. CommissionerUnited States Tax Court · 1950
- Leo Kahn Furniture Co. v. CommissionerUnited States Tax Court · 1950