Your Health Club, Inc. v. Commissioner
United States Tax Court
1. Petitioner, which kept its books and filed its returns on the accrual basis of accounting, received cash or accrued amounts within the taxable years under contracts obligating petitioner to perform services extending beyond the taxable years.
Read the full summary
1. Petitioner, which kept its books and filed its returns on the accrual basis of accounting, received cash or accrued amounts within the taxable years under contracts obligating petitioner to perform services extending beyond the taxable years. Held, the entire amount constitutes income in the year when received or accrued, notwithstanding the fact that a part of the income was "earned" in the following year. 2. Petitioner, during the taxable year, made certain improvements to premises leased by it, the cost of which, in accordance with the terms of the lease, was applied as a credit against…
1Opinion of the Court
OPINION.
Arundell, Judge'.
The principal issue for decision concerns the correctness of respondent’s action in including in petitioner’s income for each of the taxable years involved the amounts carried on petitioner’s books as “reserve for uncompleted contracts” and deferred to the following year.
The facts are briefly as follows: During the taxable years petitioner, which kept its books and filed its returns on an accrual basis of accounting, entered into contracts under which it agreed to perform certain services over the course of a year. The consideration for most of the contracts was…
2Cases cited4 opinions
- Brown v. HelveringSupreme Court of the United States · 1934
- Security Flour Mills Co. v. CommissionerSupreme Court of the United States · 1944
- South Tacoma Motor Co. v. CommissionerUnited States Tax Court · 1944
- Clay Sewer Pipe Asso. v. CommissionerUnited States Tax Court · 1943
3Cited by47 opinions
- Krim-Ko Corp. v. CommissionerUnited States Tax Court · 1951
- Beacon Publishing Company, a Kansas Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1955
- Automobile Club of New York, Inc. v. CommissionerUnited States Tax Court · 1959
- Pridemark, Inc. v. CommissionerUnited States Tax Court · 1964
- Economy Sav. & Loan Co. v. CommissionerUnited States Tax Court · 1945
42 more not listed; retrieve them via the Exa API.