Scio Oil & Gas Co. v. Commissioner
United States Tax Court
Petitioner is a corporation engaged in the production of oil. The 1950 real estate taxes on its properties in Allegany County, New York, were levied in December 1949; and, under the then existing law of New York, they became a lien on the properties at that time, although they were not paid until January 1950. Petitioner, acting in accordance with the practice which it had followed in prior years, accrued such taxes as a liability on its books in 1949, and deducted the same…
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Petitioner is a corporation engaged in the production of oil. The 1950 real estate taxes on its properties in Allegany County, New York, were levied in December 1949; and, under the then existing law of New York, they became a lien on the properties at that time, although they were not paid until January 1950. Petitioner, acting in accordance with the practice which it had followed in prior years, accrued such taxes as a liability on its books in 1949, and deducted the same in its 1949 income tax return. Subsequently, the law of New York was amended, effective as of April 5, 1950, so that…
1Opinion of the Court
Pierce, Judge:
The respondent determined a deficiency in the income tax of the petitioner for 1950 in the amount of $6,401.74. The issues presented for decision are:
1. Did the taxes on petitioner’s New York real estate, for the calendar year 1950, accrue in December 1949 when such taxes became a lien on the property; or did they accrue subsequently in the year 1950 ? Petitioner accrued and took a deduction for such taxes in 1949; but it now contends that they should have been accrued, and are deductible by it, in 1950.
2. Should the depreciation on petitioner’s oil-producing equipment, for the…
2Cases cited7 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Magruder v. SuppleeSupreme Court of the United States · 1942
- Gillespie Trust v. CommissionerUnited States Tax Court · 1954
- Getman v. NiferopulosNew York Court of Appeals · 1937
- Asthmanefrin Co. v. CommissionerUnited States Tax Court · 1956
2 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Messer Oil Corp. v. CommissionerUnited States Tax Court · 1957
- Messer Oil Corp. v. CommissionerUnited States Tax Court · 1957
- Scio Oil & Gas Co. v. CommissionerUnited States Tax Court · 1957