New York, O. & W. R. Co. v. Commissioner
United States Board of Tax Appeals
In computing net losses by the separate corporations filing a consolidated return under the provisions of the Revenue Act of 1926, all intercompany transactions should be eliminated both for the year in which the net losses were sustained and in the succeeding year or years for which the different members were entitled to carry forward the net losses.
1Opinion of the Court
OPINION.
Smith :
This proceeding is for the redetermination of a deficiency in income tax for 1926 of $57,885.15. The proceeding raises the question as to whether intercompany transactions should be excluded from income accounts of members of an affiliated group prior to computing the statutory net losses of the individual members and also excluded in computing the net income of the subsequent year prior to deducting the statutory net loss of the preceding year.
During the calendar years 1925 and 1926 the petitioner was the principal or parent corporation of a group of affiliated corporations…
2Cases cited2 opinions
- Woolford Realty Co. v. RoseSupreme Court of the United States · 1932
- Post & Sheldon Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by2 opinions
- American Founders Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- New York, O. & W. R. Co. v. CommissionerUnited States Board of Tax Appeals · 1934