Gibbs v. Commissioner
United States Tax Court
A partnership operated a dairy farm and inventoried its cows on the "farm price" method. During the taxable year it culled 40 cows from the herd because they were no longer of value for dairy purposes. Held, gain or loss on sale of such cows must be measured from the opening inventory for the taxable year applicable to such cows (sec. 113(a)(1), I.R.C. 1939) and not from a zero basis.
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A partnership operated a dairy farm and inventoried its cows on the "farm price" method. During the taxable year it culled 40 cows from the herd because they were no longer of value for dairy purposes. Held, gain or loss on sale of such cows must be measured from the opening inventory for the taxable year applicable to such cows (sec. 113(a)(1), I.R.C. 1939) and not from a zero basis. Held, further, that that portion of the opening inventory applicable to such cows must be eliminated from the opening inventory.
1Opinion of the Court
J. Clifford Gibbs and Marion W. Gibbs, Petitioners, v. Commissioner of Internal Revenue, Respondent. Estate of Frank W. Gibbs, Deceased, Ida Irene Gibbs and J. Clifford Gibbs, Executors, and Irene B. Gibbs, Petitioners, v. Commissioner of Internal Revenue, Respondent
Gibbs v. Commissioner
Docket Nos. 64535, 64536
United States Tax Court
33 T.C. 27; 1959 U.S. Tax Ct. LEXIS 66;
October 12, 1959, Filed
Decisions will be entered for the respondent.
A partnership operated a dairy farm and inventoried its cows on the "farm price" method. During the taxable year it culled 40 cows from the herd because they…
2Cases cited5 opinions
- Frank Scofield, Collector of Internal Revenue v. A. J. Lewis and Grace M. LewisCourt of Appeals for the Fifth Circuit · 1958
- Bernard B. Carter (B. B. Carter) and Tommie Velma Carter, Husband and Wife v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1958
- John E. Goodenow v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1956
- Goodenow v. CommissionerUnited States Tax Court · 1955
- Gibbs v. CommissionerUnited States Tax Court · 1959