American Can Co. v. Commissioner
United States Tax Court
1. Petitioner formerly leased, but refused to sell, the container-closing machines which it manufactured. Under an antitrust decree effective January 1, 1951, petitioner was ordered to offer its closing machines for sale. In compliance with the decree petitioner established a separate department relating to closing machines, which manufactured such machines and which leased and sold such machines, both those on hand as well as those manufactured thereafter by it.
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1. Petitioner formerly leased, but refused to sell, the container-closing machines which it manufactured. Under an antitrust decree effective January 1, 1951, petitioner was ordered to offer its closing machines for sale. In compliance with the decree petitioner established a separate department relating to closing machines, which manufactured such machines and which leased and sold such machines, both those on hand as well as those manufactured thereafter by it. Held, petitioner's sales of closing machines in 1953 did not qualify for capital gains treatment under section 117(j), I.R.C. 1939.…
1Opinion of the Court
OPINION.
Ratjm, Judge:
1. Capital gain. — Petitioner seeks the benefit of the provisions of section 117(j) of the 1939 Code with respect to the gains upon its 1953 sales of closing equipment. Section 117(j) in effect accords the favored capital gains treatment to profits realized upon the sale of “property used in the trade or business, of a character which is subject to the allowance for depreciation * * *, held for more than 6 months”; but at the same time denies such treatment where the property sold is “ (A) property of a kind which would properly be in-cludible in the inventory of the…
Also in this document: Dissent.
2Cases cited45 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Security Flour Mills Co. v. CommissionerSupreme Court of the United States · 1944
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Dixie Pine Products Co. v. CommissionerSupreme Court of the United States · 1944
40 more not listed; retrieve them via the Exa API.
3Cited by32 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Estate of Finder v. CommissionerUnited States Tax Court · 1961
- Underhill v. CommissionerUnited States Tax Court · 1966
- American Can Company v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. American Can CompanyCourt of Appeals for the Second Circuit · 1963
- The Municipal Bond Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1965
27 more not listed; retrieve them via the Exa API.