Legal Opinion

Birch Ranch & Oil Co. v. Commissioner

United States Tax Court

Decided December 15, 1949No. Docket No. 8720PublishedCited by 13 opinions

The petitioner corporation, which kept its books on the cash basis, owned substantially all land comprised in a California reclamation district. The district had outstanding 2,000 6 per cent bonds of $ 1,000 face value each, payable from the proceeds of improvement taxes assessed against the land.

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The petitioner corporation, which kept its books on the cash basis, owned substantially all land comprised in a California reclamation district. The district had outstanding 2,000 6 per cent bonds of $ 1,000 face value each, payable from the proceeds of improvement taxes assessed against the land. The petitioner and its only shareholders, husband and wife, and holding companies wholly owned by the shareholders held 1,680 of the district's bonds at the beginning of the fiscal year 1944 and acquired 310 more about the middle of the year. To pay interest on the bonds, the reclamation district,…

1Opinion of the Court

OPINION.

Johnson, Judge:

Petitioner charges the Commissioner with error in failing to allow the deduction of a net operating loss carry-back in the computation of its income and declared value excess profits taxes for the fiscal year ended September 30,1942, by virtue of a net operating loss of $186,899.37 sustained by it for the fiscal year ended September 30, 1944.' Originally petitioner also assigned;as error tl)p Commissioner’s disallowance of the unpaid portion of a deduction of $120,000 claimed on each of its returns for the fiscal years 1941 and 1942 as accrued taxes payable by it to…

2Cases cited2 opinions

  1. Commissioner v. SunnenSupreme Court of the United States · 1948
  2. Metcalfe v. MerrittCalifornia Court of Appeal · 1910

3Cited by13 opinions

  1. Foster v. Comm'rUnited States Tax Court · 1983
  2. Keefe v. CommissionerUnited States Tax Court · 1950
  3. Saigh v. CommissionerUnited States Tax Court · 1961
  4. Pittsburgh Indus. Eng'g Co. v. CommissionerUnited States Tax Court · 1950
  5. Birch Ranch & Oil Co. v. CommissionerUnited States Tax Court · 1949

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