Luhring Motor Co. v. Commissioner
United States Tax Court
1. Petitioner, an accrual basis taxpayer, sold automobiles during the taxable year 1955 on a deferred payment basis. The purchaser executed a conditional sale contract, which set forth the "total time price" of the car, including, inter alia, finance charges. The total amount of finance charges (which consisted of interest and collection fees) for the term of the contract was set forth separately therein.
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1. Petitioner, an accrual basis taxpayer, sold automobiles during the taxable year 1955 on a deferred payment basis. The purchaser executed a conditional sale contract, which set forth the "total time price" of the car, including, inter alia, finance charges. The total amount of finance charges (which consisted of interest and collection fees) for the term of the contract was set forth separately therein. The total finance charge was divided by the number of monthly payments provided in the contract and payable at fixed dates over the term of the contract to determine the monthly finance…
1Opinion of the Court
Fishee, Judge:
Respondent determined deficiencies in petitioner’s income tax for the year 1955 in the amount of $119,152.02.
The issues presented for our consideration are:
Whether the entire amount of finance charges provided for in conditional sales contracts received by petitioner during 1955 constitutes income to petitioner as of the time the contracts were entered into, or whether the charges are to be aecrued as income ratably over the lives of said contracts;
Whether petitioner is entitled under section 167(a) of the 1954 Code1 to an allowance of depreciation for the taxable year 1955 on…
2Cases cited35 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Commissioner v. HansenSupreme Court of the United States · 1959
- Massey Motors, Inc. v. United StatesSupreme Court of the United States · 1960
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3Cited by25 opinions
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- Nash v. CommissionerUnited States Tax Court · 1973
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