Deer Island Logging Co. v. Commissioner
United States Board of Tax Appeals
LONG-TERM CONTRACTS. - BASIS OF REPORTING INCOME. - Petitioner entered into a contract for purchase and sale of certain timber, and more than one year elapsing between date of commencement of work under the contract and completion, held that true income for each of the years would not be reflected by reporting income on the long-term-contract basis.
1Opinion of the Court
*1033OPINION.
Milliken :
The only question requiring a decision at this time, is the proper time for accounting for income, admittedly earned or received in 1920, 1922, and 1923, and for the expenses, losses, and statutory allowances, paid or incurred in the same years incident to the production of that income, considering the circumstance that such income was derived from the sale of products acquired under a contract which necessitated productive operations on the part *1034of petitioner for a period extending over more than one taxable year. The petitioner maintains that its books of account were kept…
2Cases cited1 opinion
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
3Cited by5 opinions
- Heiner v. MellonSupreme Court of the United States · 1938
- Effler v. CommissionerUnited States Board of Tax Appeals · 1934
- Deer Island Logging Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Effler v. CommissionerUnited States Board of Tax Appeals · 1934
- Point Comfort Venture v. CommissionerUnited States Tax Court · 1990