Hunter v. Commissioner
United States Tax Court
Petitioners owned and operated an irrigated farm in Colorado, which they acquired in 1955, together with 300 shares of Highland Irrigation Co., a nonprofit mutual assessment corporation which owned the irrigation system serving their farm.
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Petitioners owned and operated an irrigated farm in Colorado, which they acquired in 1955, together with 300 shares of Highland Irrigation Co., a nonprofit mutual assessment corporation which owned the irrigation system serving their farm. The diversion dam in the river built in 1909 or 1911 and owned by Highland was washed out by a flood in 1955. Highland borrowed money from a bank to build a new dam in 1956 and assessed its member-stockholders to meet the payments thereon as well as to pay its operating expenses. Petitioners were assessed and paid to Highland the amounts of $ 900 in 1960,…
1Opinion of the Court
Dbennen, Judge:
Respondent determined deficiencies in petitioners’ income tax for the taxable years 1960,1961, and 1962 in the amounts of $52.88, $42.82, and $89.98, respectively.
The issues for our consideration are:(1) Whether petitioners are entitled to deduct as an ordinary and necessary business expense under section 162, I.R.C. 1954,1 that portion of each annual assessment paid by them to Highland Irrigation Co. which was used by that company to repay funds borrowed and used by it to construct a diversion dam for irrigation purposes and to purchase capital stock of the bank for…
2Cases cited30 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Morgan v. CommissionerSupreme Court of the United States · 1940
- Weiss v. WeinerSupreme Court of the United States · 1929
- Helvering v. F. & R. Lazarus & Co.Supreme Court of the United States · 1939
25 more not listed; retrieve them via the Exa API.
3Cited by28 opinions
- Rink v. CommissionerUnited States Tax Court · 1969
- Park Place, Inc. v. CommissionerUnited States Tax Court · 1972
- R. R. Hensler, Inc. v. CommissionerUnited States Tax Court · 1979
- Bear Valley Mutual Water Company v. RiddellDistrict Court, C.D. California · 1968
- I. J. And Ilene J. Wagner v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1975
23 more not listed; retrieve them via the Exa API.