Stevens Bros. & Miller-Hutchinson Co. v. Commissioner
United States Tax Court
Division of Profits -- Money Furnished at Risk of Job. -- A taxpayer contractor is not taxable with entire profits from a job where, in order to obtain required $ 75,000 of funds subrogated to the rights of all creditors, it agreed that the corporation furnishing the funds should have one-half of the profits from the job.
1Opinion of the Court
OPINION.
MuRDOck, Judge,:
The Commissioner takes the untenable position, under various theories in which he refuses to face the facts, that the petitioner owed nothing to anyone for the use of the $75,000 and owned all of the income from the Algiers Locks floor contract, without diminution for any payment of any kind for the use of that money. The facts refute all of those contentions. The need for the money, the difficulty of obtaining it, the source from which it was obtained, the conditions of the contract for the payment of one-half of the net profits, and the actual payment of the agreed…
2Cases cited5 opinions
- Miles-Conley Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1949
- Miles-Conley Co. v. CommissionerUnited States Tax Court · 1948
- Dorzback v. Collison, Collector of Internal RevenueCourt of Appeals for the Third Circuit · 1952
- De Reitzes-Marienwert v. CommissionerUnited States Tax Court · 1954
- Epsen Lithographers, Inc. v. O'MalleyDistrict Court, D. Nebraska · 1946
3Cited by12 opinions
- Stevens Bros. Foundation, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
- Aldon Homes, Inc. v. CommissionerUnited States Tax Court · 1959
- Stevens Bros. Foundation, Inc. v. CommissionerUnited States Tax Court · 1962
- Diamond v. CommissionerUnited States Tax Court · 1971
- DJB Holding Corp. v. CommissionerCourt of Appeals for the Ninth Circuit · 2015
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