Poirier & McLane Corp. v. Commissioner
United States Tax Court
Suits were filed against petitioner for damages totaling $ 14,781,150 allegedly resulting from trespass and negligence claimed to have been committed in carrying out two construction jobs. Petitioner contested the claims but, on Dec. 31, 1964, transferred $ 1,100,000 in trust for the sole purpose of the payment of its obligations on the pending claims, taking a deduction for that amount on its 1964 return.
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Suits were filed against petitioner for damages totaling $ 14,781,150 allegedly resulting from trespass and negligence claimed to have been committed in carrying out two construction jobs. Petitioner contested the claims but, on Dec. 31, 1964, transferred $ 1,100,000 in trust for the sole purpose of the payment of its obligations on the pending claims, taking a deduction for that amount on its 1964 return. Judgments ultimately awarded to the claimants were small in amount, eliminating the need for the funds transferred to the trust, and the transferred funds were returned to petitioner. Held,…
1Opinion of the Court
OPINION
Featherston, Judge:
Respondent determined a deficiency in petitioner’s Federal income tax for 1964 in the amount of $624,485.37. Some of the issues have been settled, and the sole issue remaining for decision is whether petitioner is entitled to a deduction for 1964 under section 461(f)1 for the amount of funds transferred in trust under an instrument reciting that the sole purpose of the transfer was to provide funds for the payment of certain obligations as finally determined in pending litigation. The answer depends, more specifically, upon (1) whether the funds were placed beyond…
2Cases cited19 opinions
- Dixie Pine Products Co. v. CommissionerSupreme Court of the United States · 1944
- United States v. Consolidated Edison Co. of NYSupreme Court of the United States · 1961
- City Bank Farmers Trust Co. v. CannonNew York Court of Appeals · 1943
- Matter of People (Bond & Mtge. Guar. Co.)New York Court of Appeals · 1952
- Rogers Locomotive & MacHine Works v. KelleyNew York Court of Appeals · 1882
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3Cited by20 opinions
- Consolidated Freightways, Inc. & Affiliates v. CommissionerUnited States Tax Court · 1980
- Poirier & McLane Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1976
- Anesthesia Service Medical Group, Inc. v. CommissionerUnited States Tax Court · 1985
- Willamette Indus. v. CommissionerUnited States Tax Court · 1989
- Weber v. CommissionerUnited States Tax Court · 1978
15 more not listed; retrieve them via the Exa API.