Beauchamp & Brown Groves Co. v. Commissioner
United States Tax Court
Held: That liquidation under the provisions of section 337, I.R.C. 1954, does not prevent the operation of section 268, I.R.C. 1954, to disallow deductions attributable to the production of an unharvested crop which is sold with the land and considered as "property used in the trade or business" under section 1231, I.R.C. 1954. Petitioner's contention that a sale of land with an unharvested crop must result in recognized gain before the unharvested crop can be characterized…
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Held: That liquidation under the provisions of section 337, I.R.C. 1954, does not prevent the operation of section 268, I.R.C. 1954, to disallow deductions attributable to the production of an unharvested crop which is sold with the land and considered as "property used in the trade or business" under section 1231, I.R.C. 1954. Petitioner's contention that a sale of land with an unharvested crop must result in recognized gain before the unharvested crop can be characterized by section 1231 is rejected.
1Opinion of the Court
Train, Judge:
Respondent disallowed $23,220.32 of petitioner’s 1960 expenses, which had been utilized as a net operating loss carryback, and determined deficiencies in income tax for petitioner’s taxable years 1958 and 1959 in the respective amounts of $2,473.67 and $4,117.76.
The issue for decision is whether section 268 of the Internal Revenue Code of 19541 prevents the deduction of ordinary and necessary business expenses attributable to an unharvested crop where a corporation sells the crop with land pursuant to a liquidation under the provisions of section 337.
BINDINGS OP PACT
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2Cases cited16 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- Marcello v. CommissionerUnited States Tax Court · 1964
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3Cited by10 opinions
- Vern Realty, Inc. v. CommissionerUnited States Tax Court · 1972
- Beauchamp & Brown Groves Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1967
- Teget v. United StatesDistrict Court, D. South Dakota · 1976
- Anchorage Nursing Home, Inc. v. CommissionerUnited States Tax Court · 1974
- Beauchamp & Brown Groves Co. v. CommissionerUnited States Tax Court · 1965
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