Legal Opinion

Vegetable Farms, Inc. v. Commissioner

United States Tax Court

Decided May 16, 1950No. Docket No. 17208Published

1. On the facts, held, respondent's determinations as to reasonableness of salaries of depreciation on machinery and equipment during the taxable years and reasonable allowance for salaries in computing base period net income of petitioner's predecessor are sustained. 2. Held, under the facts of record, advances made to petitioner on open account by its officers are not includible in equity invested capital in determining petitioner's excess profits tax liability.

1Opinion of the Court

Vegetable Farms, Inc., Petitioner, v. Commissioner of Internal Revenue, Respondent

Vegetable Farms, Inc. v. Commissioner

Docket No. 17208

United States Tax Court

14 T.C. 850; 1950 U.S. Tax Ct. LEXIS 200;

May 16, 1950, Promulgated

Decision will be entered for the respondent.

1. On the facts, held, respondent's determinations as to reasonableness of salaries of depreciation on machinery and equipment during the taxable years and reasonable allowance for salaries in computing base period net income of petitioner's predecessor are sustained.

2. Held, under the facts of record, advances made to petitioner…

2Cases cited4 opinions

  1. Leonard Refineries, Inc. v. CommissionerUnited States Tax Court · 1948
  2. Flint Nortown Theatre Co. v. CommissionerUnited States Tax Court · 1945
  3. Tri-State Realty Co. v. CommissionerUnited States Tax Court · 1949
  4. Vegetable Farms, Inc. v. CommissionerUnited States Tax Court · 1950

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