Freudmann v. Commissioner
United States Tax Court
1. Petitioners are brothers and partners. For many years prior to 1940 they were diamond merchants in Belgium. On April 1, 1939, they opened a branch in New York City. When Germany invaded Belgium in May 1940, they fled from Belgium into France and took their stock of diamonds with them. Before leaving they made a list of all of their diamonds at cost price from the stock sheets. They deposited the diamonds in a bank in France.
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1. Petitioners are brothers and partners. For many years prior to 1940 they were diamond merchants in Belgium. On April 1, 1939, they opened a branch in New York City. When Germany invaded Belgium in May 1940, they fled from Belgium into France and took their stock of diamonds with them. Before leaving they made a list of all of their diamonds at cost price from the stock sheets. They deposited the diamonds in a bank in France. Henri's son later brought the diamonds to the United States and turned them over to the partnership. The partnership imported other diamonds direct from Brazil and…
1Opinion of the Court
OPINION.
Black, Judge'.
The four issues previously summarized will be considered in their regular order.
Issue 1. — This issue is described in our opening statement and in footnote 1 of our findings of fact. The material provisions of the Internal Revenue Code are in the margin.3
Section 19.22 (a)-5 of Regulations 103 provides that “In the case of a manufacturing, merchandising, or mining business, ‘gross income’ means the total sales, less the cost of goods sold * *
During the fiscal year ended March 31, 1941, the New York partnership sold both polished and rough diamonds. It reported a gross…
2Cases cited6 opinions
- D. Ginsberg & Sons, Inc. v. PopkinSupreme Court of the United States · 1932
- United States v. ChaseSupreme Court of the United States · 1890
- Helvering v. BruunSupreme Court of the United States · 1940
- Heiner v. MellonSupreme Court of the United States · 1938
- Helvering v. Estate of EnrightSupreme Court of the United States · 1941
1 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- United States v. BasyeSupreme Court of the United States · 1973
- Dougherty v. CommissionerUnited States Tax Court · 1973
- Cooper v. CommissionerUnited States Tax Court · 1950
- Commissioner of Internal Revenue v. Goldberger's Estate. Trounstine v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1954
- Andriesse v. CommissionerUnited States Tax Court · 1949
11 more not listed; retrieve them via the Exa API.