Broadwell Realty Corp. v. Coble

MOORE, Justice.

The sole question for decision is whether the plaintiff, having voluntarily elected the installment method of accounting for income tax purposes, may deduct deferred, potential state and federal income tax liabilities from its franchise tax base under G.S. 105-122 (b).

Plaintiff contends that it should be permitted to deduct from its franchise tax base, as computed under G.S. 105-122 (b), the amount of state and federal income taxes which may become due as certain installment income is received in the future. This contention is based upon the premise that generally accepted…