S. Garber, Inc. v. Commissioner
United States Tax Court
Petitioner is in the business of selling fur pelts at wholesale and tailoring and selling custom-made fur coats at retail. Petitioner requires advance payments to be made by customers for whom fur coats are to be made. No restrictions were placed on petitioner's use of the money received as advances. Petitioner did not include the advance payments in income until the year the fur coats were delivered.
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Petitioner is in the business of selling fur pelts at wholesale and tailoring and selling custom-made fur coats at retail. Petitioner requires advance payments to be made by customers for whom fur coats are to be made. No restrictions were placed on petitioner's use of the money received as advances. Petitioner did not include the advance payments in income until the year the fur coats were delivered. Held, respondent's adjustments requiring petitioner to include advance payments in income in the year of receipt were proper. Held, further, no deduction should be allowed in the year of…
1Opinion of the Court
MulroNet, Judge:
Respondent determined a deficiency in the petitioner’s income tax for the taxable year ended January 31, 1963, in the amount of $7,659.91.
The issues for decision are (1) whether advance payments received by petitioner from its customers on fur garments to be custom-made are includable in petitioner’s income in the year of receipt and, if so,(2) whether deduction should be allowable to petitioner at that time for the estimated cost of goods sold in relation to such garments, and(3) whether deduction should be allowable to petitioner at that time for the amount of Illinois sales…
2Cases cited14 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- American Automobile Assn. v. United StatesSupreme Court of the United States · 1961
- Schulde v. CommissionerSupreme Court of the United States · 1963
9 more not listed; retrieve them via the Exa API.
3Cited by31 opinions
- Coors v. CommissionerUnited States Tax Court · 1973
- G. Douglas Burck and Marjorie W. Burck v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1976
- Hamilton Industries, Inc. v. CommissionerUnited States Tax Court · 1991
- Louisville & N. R. Co. v. CommissionerUnited States Tax Court · 1976
- Johnson v. CommissionerUnited States Tax Court · 1997
26 more not listed; retrieve them via the Exa API.