Leo Kahn Furniture Co. v. Commissioner
United States Tax Court
Petitioner elected, pursuant to section 736 (a), Internal Revenue Code, to compute its income from installment sales for excess profits tax purposes upon the accrual basis but continued to compute its normal tax net income upon the installment basis under section 44 (a). Held: the amount of its deduction for contributions under section 23 (q) is limited to its net income computed on the accrual basis for excess profits tax purposes.
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Petitioner elected, pursuant to section 736 (a), Internal Revenue Code, to compute its income from installment sales for excess profits tax purposes upon the accrual basis but continued to compute its normal tax net income upon the installment basis under section 44 (a). Held: the amount of its deduction for contributions under section 23 (q) is limited to its net income computed on the accrual basis for excess profits tax purposes. The pertinent part of Treasury Regulations 112, section 35.736 (a)-3 is valid.
1Opinion of the Court
Leo Kahn Furniture Co., Petitioner, v. Commissioner of Internal Revenue, Respondent
Leo Kahn Furniture Co. v. Commissioner
Docket No. 13540
United States Tax Court
15 T.C. 918; 1950 U.S. Tax Ct. LEXIS 15;
December 21, 1950, Promulgated
Decision will be entered of deficiencies in excess profits taxes for the years 1940, 1941, and 1942 in the respective amounts of $ 4,085.44, $ 1,073.93, and $ 2,067.51.
Petitioner elected, pursuant to section 736 (a), Internal Revenue Code, to compute its income from installment sales for excess profits tax purposes upon the accrual basis but continued to compute its…
2Cases cited6 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Gus Blass Co. v. CommissionerUnited States Tax Court · 1947
- West End Furniture Co. v. CommissionerUnited States Tax Court · 1946
- Basalt Rock Co. v. CommissionerUnited States Tax Court · 1948
- Leo Kahn Furniture Co. v. CommissionerUnited States Tax Court · 1950
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