Gunderson Bros. Engineering Corp. v. Commissioner
United States Tax Court
Petitioner, who kept its books and records on an accrual basis, sold trucks and trailers on a deferred payment basis. A finance charge was added to the cash sales price. The purchaser, under State law and under the terms of the installment contract, was entitled to a refund credit of a portion of the finance charge upon early payment of the balance of the contract. Prior to November 1958, petitioner sold most of the customers' obligations to financial institutions.
Read the full summary
Petitioner, who kept its books and records on an accrual basis, sold trucks and trailers on a deferred payment basis. A finance charge was added to the cash sales price. The purchaser, under State law and under the terms of the installment contract, was entitled to a refund credit of a portion of the finance charge upon early payment of the balance of the contract. Prior to November 1958, petitioner sold most of the customers' obligations to financial institutions. In November 1958 petitioner established its own finance division and thereafter retained all customers' obligations. In addition,…
1Opinion of the Court
Fat, Judge:
The Commissioner determined deficiencies in petitioner’s income tax for the fiscal years ending May 31, 1958,1 and May 31, 1959, in the respective amounts of $17,152.07 and $33,322.21. The parties have agreed to certain adjustments with respect to the deficiencies.
The remaining issues for decision are (1) whether the petitioner, an accrual basis taxpayer, must include as income in the year of sale, finance charges attributable to sales on a deferred payment basis where the petitioner retains the cusotomers’ obligations and where under State law and by terms of the contract the…
2Cases cited35 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Commissioner v. HansenSupreme Court of the United States · 1959
- American Automobile Assn. v. United StatesSupreme Court of the United States · 1961
- Schulde v. CommissionerSupreme Court of the United States · 1963
30 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Prabel v. CommissionerUnited States Tax Court · 1988
- The Franklin Life Insurance Company v. United StatesCourt of Appeals for the Seventh Circuit · 1968
- Union Mutual Life Insurance Company, Plaintiff-Appellee-Cross v. United States of America, Defendant-Appellant-CrossCourt of Appeals for the First Circuit · 1978
- Bankers Union Life Ins. Co. v. CommissionerUnited States Tax Court · 1974
- Luhring Motor Co. v. CommissionerUnited States Tax Court · 1964
22 more not listed; retrieve them via the Exa API.