Sonnabend v. Commissioner
United States Tax Court
Abraham M. Sonnabend purchased a farm and herd of cattle and engaged in the business of cattle breeding. Later he purchased another herd, improved the farm, and formed a partnership with his sons to continue the business. He claimed deductions attributable to this business which in each year for 5 consecutive years exceeded by more than $ 50,000 the gross income from such business.
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Abraham M. Sonnabend purchased a farm and herd of cattle and engaged in the business of cattle breeding. Later he purchased another herd, improved the farm, and formed a partnership with his sons to continue the business. He claimed deductions attributable to this business which in each year for 5 consecutive years exceeded by more than $ 50,000 the gross income from such business. Held: 1. Respondent properly applied section 270, I.R.C. 1954, limiting the deductions allowed for the fiscal year ended in 1958. 2. The notice of deficiency, mailed within 1 year after expiration of the normal…
1Opinion of the Court
BRUCE, Judge:
Respondent determined a deficiency in income tax for the fiscal year ended August 31,1958, in the amount of $47,174.36. The sole issues remaining for decision concern the application of section 270 of the Internal Revenue Code of 1954. The issues are (1) whether Abraham M. Sonnabend had allowable deductions attributable to a trade or business carried on by him for 5 consecutive years which in each year exceeded by more than $50,000 the gross income derived therefrom, and (2) whether respondent’s determination is barred by the statutory period of limitations. Other issues have…
2Cases cited3 opinions
- Graves v. New York Ex Rel. O'KeefeSupreme Court of the United States · 1939
- Alexander v. CommissionerUnited States Tax Court · 1954
- MacMurray v. CommissionerUnited States Tax Court · 1953
3Cited by2 opinions
- Haynes v. CommissionerUnited States Tax Court · 1979
- Sonnabend v. CommissionerUnited States Tax Court · 1966