Shoemaker-Nash, Inc. v. Commissioner
United States Board of Tax Appeals
The petitioner, an automobile dealer, kept its books of account and reported its income on the accrual method. It sold deferred payment notes received in payment for automobiles to two finance companies.
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The petitioner, an automobile dealer, kept its books of account and reported its income on the accrual method. It sold deferred payment notes received in payment for automobiles to two finance companies. The finance companies did not immediately pay over the full amount of the purchase price of the notes byt retained a portion thereof as agreed upon with petitioner, the amount so retained being released and paid over to petitioner as the unpaid balance on all the notes so acquired plus the amount of any indebtedness of petitioner to the particular finance company should be reduced. Held, that…
1Opinion of the Court
*421OPINION.
Turner:
According to the facts, the petitioner is a dealer in new and used automobiles, and was so engaged during the taxable year. In payment for automobiles sold it received notes of the purchasers, which notes it subsequently sold to either one of two finance companies. It is stipulated that petitioner kept its books of account and reported its income on the accrual method. With respect to proper treatment for income tax purposes of proceeds from sales made by a concern which keeps its accounts and makes its returns on the accrual basis, the Supreme Court, in Spring City Foundry Co.…
2Cases cited1 opinion
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
3Cited by21 opinions
- Blaine Johnson and His Wife, Evelyn K. Johnson v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1956
- John R. Hansen and Shirley G. Hansen v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1958
- Texas Trailercoach, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1958
- J. H. Schaeffer, Jr., and Opal R. Schaeffer v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1958
- General Gas Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1961
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