Brookshire v. Commissioner
United States Tax Court
A partnership of which the petitioners were members kept its books and filed its income tax returns on the cash receipts and disbursements method of accounting for all years prior to 1952. In 1952 it changed its method of accounting to an accrual method and filed its return for that year accordingly.
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A partnership of which the petitioners were members kept its books and filed its income tax returns on the cash receipts and disbursements method of accounting for all years prior to 1952. In 1952 it changed its method of accounting to an accrual method and filed its return for that year accordingly. Held, that the respondent properly adjusted reported income of the partnership for the year 1952 by increasing income by amounts collected in that year on accounts receivable as of the beginning of the year representing sales made in the prior year, and by reducing the cost of goods sold by that…
1Opinion of the Court
AtkiNS, Judge:
The respondent determined deficiencies in income tax against the petitioners as follows:
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The principal question is whether in 1952, the year in which a partnership changed from a cash to an accrual method of accounting and reporting income it is required to include in taxable income the accounts receivable as of the beginning of that year which were collected in that year, and to reduce the cost of goods sold by that portion of inventory on hand at the beginning of 1952 which had been paid for and deducted prior to 1952.
The year 1950 is before us as a result of an…
2Cases cited11 opinions
- Caldwell v. Commissioner of Internal Revenue. Commissioner of Internal Revenue v. CaldwellCourt of Appeals for the Second Circuit · 1953
- Commissioner of Internal Revenue v. DwyerCourt of Appeals for the Second Circuit · 1953
- Commissioner of Internal Revenue v. SchuylerCourt of Appeals for the Second Circuit · 1952
- Glenn v. Kentucky Color & Chemical Co., IncCourt of Appeals for the Sixth Circuit · 1951
- Welp v. United StatesCourt of Appeals for the Eighth Circuit · 1953
6 more not listed; retrieve them via the Exa API.
3Cited by23 opinions
- Knight-Ridder Newspapers, Inc. v. United StatesCourt of Appeals for the Eleventh Circuit · 1984
- Pursell v. CommissionerUnited States Tax Court · 1962
- Ezo Products Co. v. CommissionerUnited States Tax Court · 1961
- Drazen v. CommissionerUnited States Tax Court · 1960
- Dearborn Gage Co. v. CommissionerUnited States Tax Court · 1967
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