Legal Opinion

Evans Motor Co. v. Commissioner

United States Tax Court

Decided December 30, 1957No. Docket No. 66001PublishedCited by 6 opinions

Petitioner is an automobile dealer and sells automobiles with downpayment of cash or trade-in payment with balance of purchase price being payable in monthly installments provided for in conditional sales contracts. Petitioner sold some of these contracts to a finance company which remitted part of the sales price in cash and credited part to petitioner in a "Special Reserve" account.

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Petitioner is an automobile dealer and sells automobiles with downpayment of cash or trade-in payment with balance of purchase price being payable in monthly installments provided for in conditional sales contracts. Petitioner sold some of these contracts to a finance company which remitted part of the sales price in cash and credited part to petitioner in a "Special Reserve" account. It was provided in the contract that amounts accumulated to petitioner in the special reserve account were to be held by the finance company until such time as those amounts equal or exceed 3 per cent of "our…

1Opinion of the Court

OPINION.

Black, Judge:

The Commissioner has determined deficiencies in petitioner’s income tax as follows:

Year Deficiency

1953_$555.15

1954_ 128.60

The deficiency for 1953 is due to one adjustment made by the Commissioner to the net income reported on petitioner’s return, “(a) Finance Reserve Income $1,850.55.” This adjustment is explained in the deficiency notice as follows:(a) It is determined that income realized by you from dealers finance reserve and not reported on your return for the taxable year ended December 31, 1953 constitutes income for that year in the amount of $1,850.55 under the…

2Cases cited2 opinions

  1. Blaine Johnson and His Wife, Evelyn K. Johnson v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1956
  2. Keasbey & Mattison Co. v. United StatesCourt of Appeals for the Third Circuit · 1944

3Cited by6 opinions

  1. John R. Hansen and Shirley G. Hansen v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1958
  2. Key Homes, Inc. v. CommissionerUnited States Tax Court · 1958
  3. General Gas Corp. v. CommissionerUnited States Tax Court · 1959
  4. Evans Motor Co. v. CommissionerUnited States Tax Court · 1957
  5. General Gas Corp. v. CommissionerUnited States Tax Court · 1959

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