Legal Opinion

Wise v. Commissioner

United States Tax Court

Decided February 22, 1982No. Docket No. 7769-77Published

Petitioners entered into a cost-plus-fixed-fee contract with a building contractor to construct an addition to their home. Michigan sales tax (imposed on retail sellers) was imposed on the contractor's purchases from his suppliers and generally separately listed on the suppliers' invoices to the contractor. The contractor paid the amounts of these taxes to his suppliers.

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Petitioners entered into a cost-plus-fixed-fee contract with a building contractor to construct an addition to their home. Michigan sales tax (imposed on retail sellers) was imposed on the contractor's purchases from his suppliers and generally separately listed on the suppliers' invoices to the contractor. The contractor paid the amounts of these taxes to his suppliers. Petitioners' contract payments of "The net cost of all labor & material" included amounts on account of these taxes. Held, petitioners did not pay Michigan sales taxes to the sellers in the retail sales Michigan chose to tax…

1Opinion of the Court

Benjamin W. Wise and Rosemarie Wise, Petitioners v. Commissioner of Internal Revenue, Respondent

Wise v. Commissioner

Docket No. 7769-77

United States Tax Court

78 T.C. 270; 1982 U.S. Tax Ct. LEXIS 134; 78 T.C. No. 19;

February 22, 1982, Filed

Decision will be entered for the respondent.

Petitioners entered into a cost-plus-fixed-fee contract with a building contractor to construct an addition to their home. Michigan sales tax (imposed on retail sellers) was imposed on the contractor's purchases from his suppliers and generally separately listed on the suppliers' invoices to the contractor. The…

2Cases cited8 opinions

  1. Magruder v. SuppleeSupreme Court of the United States · 1942
  2. Boyer-Campbell Co. v. FryMichigan Supreme Court · 1935
  3. Federal Reserve Bank v. Department of RevenueMichigan Supreme Court · 1954
  4. Armentrout v. CommissionerUnited States Tax Court · 1964
  5. Sims v. Firestone Tire & Rubber Co.Michigan Supreme Court · 1976

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