Lamesa Cooperative Gin v. Commissioner
United States Tax Court
1. Petitioner, an exempt farmers' cooperative, sold in taxable year 1974 equipment on which it had deducted depreciation in prior years. All the gain from the sale of the equipment was reported on petitioner's taxable year 1974 return as ordinary income under sec. 1245, I.R.C. 1954. In determining the amount to be paid as patronage dividends, petitioner allocated all this gain to its taxable year 1974 patrons in proportion to their patronage during that year.
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1. Petitioner, an exempt farmers' cooperative, sold in taxable year 1974 equipment on which it had deducted depreciation in prior years. All the gain from the sale of the equipment was reported on petitioner's taxable year 1974 return as ordinary income under sec. 1245, I.R.C. 1954. In determining the amount to be paid as patronage dividends, petitioner allocated all this gain to its taxable year 1974 patrons in proportion to their patronage during that year. Held, under sec. 1382(b), I.R.C. 1954, petitioner was entitled to exclude in computing taxable income the entire amount of the gain…
1Opinion of the Court
Lamesa Cooperative Gin, Petitioner v. Commissioner of Internal Revenue, Respondent
Lamesa Cooperative Gin v. Commissioner
Docket No. 237-79
United States Tax Court
78 T.C. 894; 1982 U.S. Tax Ct. LEXIS 90; 78 T.C. No. 63;
June 8, 1982, Filed
Decision will be entered for the petitioner.
1. Petitioner, an exempt farmers' cooperative, sold in taxable year 1974 equipment on which it had deducted depreciation in prior years. All the gain from the sale of the equipment was reported on petitioner's taxable year 1974 return as ordinary income under sec. 1245, I.R.C. 1954. In determining the amount to be paid…
2Cases cited18 opinions
- Burnet v. HoustonSupreme Court of the United States · 1931
- United States v. KalesSupreme Court of the United States · 1941
- Union Equity Cooperative Exchange v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1973
- Union Equity Cooperative Exchange v. CommissionerUnited States Tax Court · 1972
- Pomeroy Coop. Grain Co. v. CommissionerUnited States Tax Court · 1958
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