Guardian Indus. Corp. v. Commissioner
United States Tax Court
Ps engaged in the photo-finishing business. Both the photographic film Ps received from their customers for developing and the paper purchased by Ps for use in making prints contain silver halide compounds, which are removed during the developing process. Ps extracted silver-bearing waste materials from the chemical solutions used in photo-finishing and sold them in the ordinary course of their photo-finishing business.
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Ps engaged in the photo-finishing business. Both the photographic film Ps received from their customers for developing and the paper purchased by Ps for use in making prints contain silver halide compounds, which are removed during the developing process. Ps extracted silver-bearing waste materials from the chemical solutions used in photo-finishing and sold them in the ordinary course of their photo-finishing business. The sales were frequent and generated substantial income. Ps originally reported the sales proceeds as ordinary income on their tax returns, but subsequently amended such…
1Opinion of the Court
WELLS, Judge:
Respondent determined the following deficiencies in petitioners’ Federal income tax:
Year Deficiency
1983.$8,128,580
1984. 728,942
After concessions by both parties, the sole issue remaining for decision is whether silver-bearing waste material generated in the course of petitioners’ photo-finishing business is property held by petitioners primarily for sale to customers in the ordinary course of petitioners’ trade or business.
FINDINGS OF FACT
Some of the facts have been stipulated for trial pursuant to Rule 91.1 The stipulations and accompanying exhibits are incorporated in this…
2Cases cited70 opinions
- Malat v. RiddellSupreme Court of the United States · 1966
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Commissioner v. Lincoln Savings & Loan Ass'nSupreme Court of the United States · 1971
- Grodt & McKay Realty, Inc. v. CommissionerUnited States Tax Court · 1981
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
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3Cited by22 opinions
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- Drummond v. CommissionerUnited States Tax Court · 1997
- Computervision Int'l Corp. v. CommissionerUnited States Tax Court · 1996
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