Leamington Hotel Co. v. Commissioner
United States Board of Tax Appeals
1. Minnesota property taxes which become a liability on May 1 are not deductible by the petitioner, although paid by it, where the property taxed was not acquired until June. The amount paid by the petitioner represented taxes of a prior owner and constituted an additional cost of the property to petitioner. 2. Petitioner accrued its estimated liability for water service as an expense for the taxable year and deducted the amount thereof in computing its net taxable income.
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1. Minnesota property taxes which become a liability on May 1 are not deductible by the petitioner, although paid by it, where the property taxed was not acquired until June. The amount paid by the petitioner represented taxes of a prior owner and constituted an additional cost of the property to petitioner. 2. Petitioner accrued its estimated liability for water service as an expense for the taxable year and deducted the amount thereof in computing its net taxable income. The charge was paid in the following year in an amount less than that estimated. Held, that the amount actually paid…
1Opinion of the Court
LEAMINGTON HOTEL COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Leamington Hotel Co. v. Commissioner
Docket No. 48413.
United States Board of Tax Appeals
26 B.T.A. 1004; 1932 BTA LEXIS 1208;
September 16, 1932, Promulgated
1. Minnesota property taxes which become a liability on May 1 are not deductible by the petitioner, although paid by it, where the property taxed was not acquired until June. The amount paid by the petitioner represented taxes of a prior owner and constituted an additional cost of the property to petitioner.
2. Petitioner accrued its estimated liability for…
2Cases cited12 opinions
- County of Martin v. DrakeSupreme Court of Minnesota · 1889
- H. H. Brown Co. v. CommissionerUnited States Board of Tax Appeals · 1927
- Bull v. CommissionerUnited States Board of Tax Appeals · 1927
- State v. Northwestern Telephone Exchange Co.Supreme Court of Minnesota · 1900
- Leamington Hotel Co. v. CommissionerUnited States Board of Tax Appeals · 1932
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