Kent Homes, Inc. v. United States

BREITENSTEIN, Circuit Judge.

This is a suit for refund of federal income taxes. The question is whether receipts from a federal condemnation were taxable in 1962 or 1963. The government contends that because the taxpayer was on the accrual basis the receipts were taxable in 1962. The district court gave judgment for taxpayer and the government appeals. We affirm.

The taxpayer, plaintiff-appellee Kent Homes, Inc., participated in a Wherry Military Housing Act project at Fort Leavenworth, Kansas. To finance construction it gave notes and a mortgage which were held by New York Life Insurance…