Guy F. Atkinson Co. v. Commissioner
United States Tax Court
A member of petitioners' consolidated return group was a member of a joint venture which was engaged in the construction of a water tunnel. The venture, which employed the completed contract method for reporting income and expenses, unilaterally withdrew from the project without finishing it in 1975 after suffering extensive losses.
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A member of petitioners' consolidated return group was a member of a joint venture which was engaged in the construction of a water tunnel. The venture, which employed the completed contract method for reporting income and expenses, unilaterally withdrew from the project without finishing it in 1975 after suffering extensive losses. Held, 1975 was not the year of contract completion, and petitioners may not deduct their distributive share of the venture's losses from constructing the tunnel in that year. Another member of petitioners' consolidated return group was engaged in the construction…
1Opinion of the Court
Sterret, Judge:
By notice of deficiency dated March 5,1981, respondent determined deficiencies in petitioners’ Federal income taxes as follows:
TYE Dec. 31— Deficiency
1972.$758,074
1973. 15,368
1974 . 5,290
1975.3,414,988
4,193,720
After concessions, the issues for decision are whether the proper year for reporting losses from the construction of a water tunnel where the contractor elected the completed contract method of accounting was 1975 or an earlier year and, if so, whether certain losses were allowable in the year of completion. The other issue for decision is whether one of the petitioners…
2Cases cited29 opinions
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- Samuel Pollack and Annie Pollack v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1968
- Pollack v. CommissionerUnited States Tax Court · 1966
- Century Distilling Co. v. Continental Distilling Co.Court of Appeals for the Third Circuit · 1939
- Estate of Scofield v. CommissionerUnited States Tax Court · 1956
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- Guy F. Atkinson Co. v. CommissionerUnited States Tax Court · 1984
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