Swallows Holding, Ltd. v. Comm'r
United States Tax Court
P is a foreign corporation whose only substantial asset is unimproved land in the United States. On its 1994, 1995, and 1996 Federal income tax returns, P recognized rent and option income and claimed deductions for taxes and licenses, the result of which was a reported loss for each year.
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P is a foreign corporation whose only substantial asset is unimproved land in the United States. On its 1994, 1995, and 1996 Federal income tax returns, P recognized rent and option income and claimed deductions for taxes and licenses, the result of which was a reported loss for each year. P filed each return after its due date, but before any contact from R. R determined that sec. 882(c)(2), I.R.C., precluded P from deducting its expenses because it filed its returns untimely. In Anglo-Am. Direct Tea Trading Co. v. Commissioner, 38 B.T.A. 711 (1938), a setting similar to that here, the Board…
1Opinion of the Court
Laro, Judge:
Petitioner petitioned the Court to redetermine respondent’s determination of deficiencies in its Federal income taxes for its taxable years ended May 31, 1994, 1995, and 1996 (1994, 1995, and 1996 taxable years, respectively; collectively, subject years), and additions thereto under section 6651(a)(1).1 The deficiencies and additions to tax are as follows:
Taxable year Deficiency Addition to tax sec. 6651(a)(1)
1994 $7,200 $1,800.00
1995 5,850 1,462.50
1996 1,800 450.00
We decide whether petitioner may deduct the ordinary and necessary expenses it incurred during the subject years. The…
2Cases cited77 opinions
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- Welch v. HelveringSupreme Court of the United States · 1933
- Pierce v. UnderwoodSupreme Court of the United States · 1988
- Marbury v. MadisonSupreme Court of the United States · 1803
- Immigration & Naturalization Service v. Cardoza-FonsecaSupreme Court of the United States · 1987
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3Cited by32 opinions
- Lewis v. Comm'rUnited States Tax Court · 2007
- Swallows Holding, Ltd. v. CommissionerCourt of Appeals for the Third Circuit · 2008
- New Millennium Trading, L.L.C. v. Comm'rUnited States Tax Court · 2008
- Lantz v. Comm'rUnited States Tax Court · 2009
- Mannella v. Comm'rUnited States Tax Court · 2009
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