Cosmopolitan Bond & Mortgage Co. v. Commissioner
United States Board of Tax Appeals
1. Where all income and expense accounts in petitioner's books of account were kept on the cash receipts and disbursements basis, and only one account therein showed discounts charged on loans made during the year, but only discounts actually received upon payment or sale of loans were treated as income, held that the petitioner was on the cash receipts and disbursements basis. 2. Part of petitioner's business consisted of making real estate loans on which it charged the…
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1. Where all income and expense accounts in petitioner's books of account were kept on the cash receipts and disbursements basis, and only one account therein showed discounts charged on loans made during the year, but only discounts actually received upon payment or sale of loans were treated as income, held that the petitioner was on the cash receipts and disbursements basis. 2. Part of petitioner's business consisted of making real estate loans on which it charged the borrower a commission in addition to the interest on the face value of the loans. This commission was deducted, along with…
1Opinion of the Court
*720OPINION.
McMahon :
Section 212 (b) of the Revenue Act of 19261 provides that the net income shall be computed in accordance with the method of accounting regularly employed in keeping the books of the taxpayer. The stipulated facts show that all of the petitioner’s income and expense accounts were kept on the cash receipts and disbursements basis, with the single exception of an account called “ commissions on loans ”, and that the petitioner made its income tax returns in accordance with its books, with the single exception of the account “ commissions on loans ”, and reported only discounts…
2Cases cited6 opinions
- Beaumont, Sour Lake & Western Railway Co. v. BeaumontSupreme Court of the United States · 1930
- Columbia State Sav. Bank v. CommissionerUnited States Board of Tax Appeals · 1929
- Appeal of First National Bank of StoughtonUnited States Board of Tax Appeals · 1925
- Bonded Mortgage Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1927
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Cosmopolitan Bond & Mortgage Co. v. CommissionerUnited States Board of Tax Appeals · 1934