Paccar, Inc. v. Commissioner
United States Tax Court
Held: Transfers of surplus and obsolete inventory by petitioner to an unrelated warehouse facility did not constitute a sale due to petitioner's retention of dominion and control over the transferred material. Absent a sale, deductions for inventory losses based on scrap value of the material are impermissible.
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Held: Transfers of surplus and obsolete inventory by petitioner to an unrelated warehouse facility did not constitute a sale due to petitioner's retention of dominion and control over the transferred material. Absent a sale, deductions for inventory losses based on scrap value of the material are impermissible. Thor Power Tool Co. v. Commissioner, 439 U.S. 522 (1979). Held, further: Respondent was not arbitrary is adjusting sales prices on truck units sold by petitioner to its wholly owned subsidiary. The proper amount of adjustment is determined from the facts in the record. The sales price…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioner’s income taxes for the years and in the amounts as follows:
Year Deficiency
1975. $566,352
1976. 11,578,202
1977. 1,117,128
Some of the issues raised by the pleadings have been disposed of by agreement of the parties, leaving for our decision: (1) Whether petitioner’s transfer of surplus and obsolete material to sajac, an unrelated warehouse facility, constituted a sale entitling petitioner to claimed deductions for inventory losses based on the scrap value of the materials transferred; (2) whether the 10-percent purchase discount…
2Cases cited35 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Commissioner v. DubersteinSupreme Court of the United States · 1960
- Helvering v. CliffordSupreme Court of the United States · 1940
30 more not listed; retrieve them via the Exa API.
3Cited by31 opinions
- Sundstrand Corp. v. CommissionerUnited States Tax Court · 1991
- Paccar, Inc. And Subsidiaries v. Commissioner Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1988
- Bausch & Lomb, Inc. v. CommissionerUnited States Tax Court · 1989
- G.D. Searle & Co. v. CommissionerUnited States Tax Court · 1987
- Procter & Gamble Co. v. CommissionerUnited States Tax Court · 1990
26 more not listed; retrieve them via the Exa API.