Messer Oil Corp. v. Commissioner
United States Tax Court
Property taxes on petitioner's property for the year 1951 were levied in December 1950. The taxes were not a lien on the property in 1950 nor did petitioner become personally liable therefor in 1950. Petitioner, an accrual basis taxpayer, accrued and deducted the taxes in the taxable (calendar) year 1950. Respondent disallowed the deduction, determining the taxes did not accrue until the lien attached in 1951. He allowed a deduction in 1951 for the 1951 taxes.
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Property taxes on petitioner's property for the year 1951 were levied in December 1950. The taxes were not a lien on the property in 1950 nor did petitioner become personally liable therefor in 1950. Petitioner, an accrual basis taxpayer, accrued and deducted the taxes in the taxable (calendar) year 1950. Respondent disallowed the deduction, determining the taxes did not accrue until the lien attached in 1951. He allowed a deduction in 1951 for the 1951 taxes. Held, respondent upheld. The taxes in question did not accrue in 1950 since they were not imposed for that year, they did not become a…
1Opinion of the Court
OPINION.
Black, Judge:
The Commissioner determined deficiencies in income tax for the taxable (calendar) years ended December 31, 1950 and 1951, in the amounts of $10,705.38 and $3,181.84, respectively.
The deficiency for the year 1950 is due to the respondent’s determination that property taxes imposed for the year 1951, which were levied on December 20,1950, but which became a lien on the property on January 1, 1951, accrued and became deductible in 1951 rather than 1950, as claimed by petitioner.
The deficiency for the year 1951 is due to a similar adjustment.
The petitioner, by appropriate…
2Cases cited2 opinions
- Keil Properties, Inc. v. CommissionerUnited States Tax Court · 1955
- Scio Oil & Gas Co. v. CommissionerUnited States Tax Court · 1957
3Cited by1 opinion
- Messer Oil Corp. v. CommissionerUnited States Tax Court · 1957