Adair v. Commissioner
United States Board of Tax Appeals
1. For the years 1925 through 1935 the petitioner valued its inventories of live stock by the constant price method. Such basis was consistently accepted by the respondent for all years except 1935. For 1935 the respondent accepted such basis with respect to three of the petitioner's herds, but as to the other herd determined that the farm price method should be used.
Read the full summary
1. For the years 1925 through 1935 the petitioner valued its inventories of live stock by the constant price method. Such basis was consistently accepted by the respondent for all years except 1935. For 1935 the respondent accepted such basis with respect to three of the petitioner's herds, but as to the other herd determined that the farm price method should be used. Held that the constant price method is not a proper basis for valuing the petitioner's inventories; held, further, that the use of the farm price method is optional with the taxpayer; held, further, that the petitioner, so…
1Opinion of the Court
*392OPINION.
TurneR :
There is no controversy between the parties as to whether the use of inventories of live stock is necessary to the correct determination of the petitioner’s income, but they are in disagreement as to the method to be used in valuing such inventories. The respondent contends that the farm price method is the proper method and that his action in using it should be sustained. The petitioner concedes that it is not entitled to use the constant price method which it employed in filing its return. However it contends now, as prior to the determination of the deficiency, that it is…
2Cases cited1 opinion
- Lucas v. Kansas City Structural Steel Co.Supreme Court of the United States · 1930
3Cited by3 opinions
- Adair v. CommissionerUnited States Board of Tax Appeals · 1941
- Beaumont Farms, Inc. v. CommissionerUnited States Tax Court · 1949
- Charley W. Peterson v. CommissionerUnited States Tax Court · 1945