Continental Baking Corp. v. Commissioner
United States Board of Tax Appeals
In July 1925 a domestic corporation keeping its accounts on the accrual basis filed a capital stock tax return in which it claimed exemption from the tax as not being engaged in business. In 1929 the respondent denied the claimed exemption, and in that year the tax was paid. In its income tax return for 1929 a deduction was taken for the amount of the tax paid. Held, the tax accrued in 1925 and was not a proper deduction from income in 1929.
1Opinion of the Court
*355OPINION.
Marquette:
The issue to be decided is whether the capital stock tax of the Bakeries Service Corporation accrued in 1925 or in 1929, *356in which latter year the respondent determined it was not exempt from such tax. If it was a proper accrual for 1929 the petitioner prevails; otherwise, it is not entitled to deduct the amount of the tax in its income tax return for that year. Russell-Miller Milling Co., 27 B.T.A. 405; aff'd., 67 Fed. (2d) 392. The applicable provisions of the Revenue Act of 1924 and of the respondent’s regulations are set forth in the margin.1
The petitioner maintains that…
2Cases cited6 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Continental Tie & Lumber Co. v. United StatesSupreme Court of the United States · 1932
- Aluminum Castings Co. v. RoutzahnSupreme Court of the United States · 1930
- Columbian Carbon Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Permanent Homes Land Co. v. CommissionerUnited States Board of Tax Appeals · 1932
1 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Continental Baking Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Floyd, Inc. v. CommissionerUnited States Board of Tax Appeals · 1940