Commissioner v. McDonald

MOORE, Circuit Judge.

This is a petition by the Commissioner for review of a Tax Court decision, reported at 36 T.C. 1108, holding that the corporate taxpayer was entitled to a deduction in computing its taxable income for the period of January 1, 1956 to October 18, 1956, for Louisiana state income taxes paid on the gain from a sale of land when such gain was not recognized for federal income tax purposes because of Section 337(a) of the Internal Revenue Code of 1954.1 The relevant facts were stipulated by the parties and may be briefly summarized.

The Oaks, Incorporated,2 a Louisiana…