Modesto Dry Yard, Inc. v. Commissioner
United States Tax Court
1. Contracts to purchase packed dried raisins to be delivered in the latter part of the year f. o. b. dock, entered into as a speculation by taxpayer in May, 1937, long prior to the maturity and harvest of grapes, such contracts not being sold until the succeeding year, held, to be capital assets. 2. Held, that the loss sustained on the sales of such contracts in June, 1938, is excludable under section 711 (b) (1) (B), I. R. C., in computing excess profits net income.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The excess profits credit for the taxable years 1943 and 1944 is based on income and is computed under section 713 (f) (6) of the Internal Revenue Code. In its brief the petitioner confines its arguments to the 1938 loss, stating that, “irrespective of the allowance or disallowance of the 1937 loss, the average base period net income would be the same since it is limited to the highest excess profits net income for a taxable year in the base period (§713 (f) (6)), in this case‘the year 1938.” It contends that the 1938 loss in the amount of $3,689.92 should be…
2Cases cited10 opinions
- Blackwood v. Cutting Packing Co.California Supreme Court · 1888
- Standard Oil Co. v. JohnsonCalifornia Supreme Court · 1944
- Walti v. GabaCalifornia Supreme Court · 1911
- Turner, Kuhn & Fraser, Inc. v. JonesCalifornia Court of Appeal · 1923
- Estate of Makransky v. CommissionerUnited States Tax Court · 1945
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3Cited by5 opinions
- New Mexico Timber Co. v. CommissionerUnited States Tax Court · 1985
- Myers v. CommissionerUnited States Tax Court · 1986
- Stein v. CommissionerUnited States Tax Court · 1989
- Modesto Dry Yard, Inc. v. CommissionerUnited States Tax Court · 1950
- New Mexico Timber Co. v. CommissionerUnited States Tax Court · 1985