Helvering v. Johnson County Realty Co.

THOMAS, Circuit Judge.

This is a petition of the Commissioner of Internal Revenue to review a decision (44 B.T.A. 121) of the Board of Tax Appeals.

On December 28, 193S, the taxpayer purchased a parcel of real estate in Iowa. In 1936 it paid the 1935 taxes on the premises in the amount of $3,649.28, and in its income tax return for that year it deducted the amount so paid. The Commissioner disallowed the claimed deduction, and upon appeal the Board reversed, holding that the payment was deductible. The taxpayer keeps its books and files its income tax returns on the cash receipts and…