Clark Dredging Co. v. Commissioner
United States Board of Tax Appeals
,1. Petitioner acquired the assets and assumed the liabilities of another corporation, and, during the taxable year, to assure fulfillment of its obligation, it made a deposit of cash and bonds with sureties on the bond of its predecessor to save the sureties harmless from the demand of the United States for reimbursement of increased costs incurred in completing a contract on which the predecessor had defaulted, The amount of cash and bonds deposited was equal to the face…
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,1. Petitioner acquired the assets and assumed the liabilities of another corporation, and, during the taxable year, to assure fulfillment of its obligation, it made a deposit of cash and bonds with sureties on the bond of its predecessor to save the sureties harmless from the demand of the United States for reimbursement of increased costs incurred in completing a contract on which the predecessor had defaulted, The amount of cash and bonds deposited was equal to the face amount of the bond, and the deposit was made upon the condition that the cash and bonds should belong to the sureties to…
1Opinion of the Court
*510OPINION.
Steenhagen :
1. The petitioner claims a deduction in 1924 of $85,000 in respect of the cash and bonds which it deposited with the *511sureties to meet the demand of the United States for reimbursement of the increased cost of performing the work contemplated by the Miami Bar contract of the Bowers Company. It is not stated upon which of the enumerated statutory provisions the claimed deduction is based, and, when we come to describe the situation in 1924, the difficulty of bringing it within the statute may explain the failure to define the claimed deduction. What happened in 1924 was not…
2Cases cited1 opinion
- Lucas v. American Code Co.Supreme Court of the United States · 1930
3Cited by9 opinions
- American Air Filter Co. v. CommissionerUnited States Tax Court · 1983
- United States v. Texas Mexican Railway CompanyCourt of Appeals for the Fifth Circuit · 1959
- Pennsylvania Co. for Ins. etc. v. CommissionerUnited States Board of Tax Appeals · 1934
- American Air Filter Co. v. CommissionerUnited States Tax Court · 1983
- Clark Dredging Co. v. CommissionerUnited States Board of Tax Appeals · 1931
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