Long Beach Improv. Co. v. Commissioner
United States Board of Tax Appeals
A corporation is subject to tax upon its net income for 1920 although such income is not sufficient to wipe out a pre-existing deficit.
1Opinion of the Court
OPINION.
Morris:
It was stipulated that the petitioner had a deficit at the beginning of 1919 which was reduced by a profit for that year and further reduced at the close of 1920 by the profit realized in that year. It contends, however, that such profit is not net income as it can have no net income while there is an operating deficit and that the gain realized in 1920 can not be construed other than as a re*591turn of capital. Although it was stipulated that the net income for the taxable year in question was $17,247.63, the petitioner contends in its brief that the reduction of the deficit…
2Cited by4 opinions
- Cranson v. United StatesCourt of Appeals for the Ninth Circuit · 1945
- Crane Johnson Co. v. CommissionerUnited States Board of Tax Appeals · 1938
- Foley Sec. Corp. v. CommissionerUnited States Board of Tax Appeals · 1938
- Long Beach Improv. Co. v. CommissionerUnited States Board of Tax Appeals · 1926