Max Sobel Wholesale Liquors v. Commissioner
United States Tax Court
Petitioner was a wholesale liquor dealer. In violation of State law, petitioner made sales to selected customers at posted prices with the understanding that such customers would be entitled to credit to be used for the purchase of additional liquors, or to an additional bottle for each case purchased.
Read the full summary
Petitioner was a wholesale liquor dealer. In violation of State law, petitioner made sales to selected customers at posted prices with the understanding that such customers would be entitled to credit to be used for the purchase of additional liquors, or to an additional bottle for each case purchased. When deliveries were made of the additional liquors, the cost thereof was charged to the cost of sales and deducted in arriving at petitioner's gross income: Held, the cost of such additional liquors is deductible from gross income as part of the cost of goods sold and is not, therefore, a…
1Opinion of the Court
Quealy, Judge:
This proceeding involves the redetermination of deficiencies in income taxes of petitioner as follows:
FYE Jan. 31— Deficiency
1973.$72,468
1974.59,487
1975.42,410
As a result of concessions by the parties, the sole question for decision is whether the petitioner is precluded from charging as a cost or deducting under section 162(c)(2)1 the cost of liquor and wine transferred to selected customers in violation of the laws of the State of California.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and the exhibits attached thereto are incorporated…
2Cases cited13 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Commissioner v. TellierSupreme Court of the United States · 1966
- Commissioner v. WilcoxSupreme Court of the United States · 1946
- Tank Truck Rentals, Inc. v. CommissionerSupreme Court of the United States · 1958
- Sullenger v. CommissionerUnited States Tax Court · 1948
8 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Dixie Dairies Corp. v. CommissionerUnited States Tax Court · 1980
- Max Sobel Wholesale Liquors v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
- Olive v. CommissionerUnited States Tax Court · 2012
- Molsen v. CommissionerUnited States Tax Court · 1985
- Alex v. CommissionerUnited States Tax Court · 1978
35 more not listed; retrieve them via the Exa API.