EHRET-DAY CO. v. COMMISSIONER
United States Tax Court
1. During the taxable year the petitioner performed the work of constructing a building in all important particulars called for by the contract, but at the close of the year several minor defects in workmanship remained to be corrected. The architect issued his certificate during the taxable year authorizing a final payment to the contractor and stating that a small amount was retained for final adjustment.
Read the full summary
1. During the taxable year the petitioner performed the work of constructing a building in all important particulars called for by the contract, but at the close of the year several minor defects in workmanship remained to be corrected. The architect issued his certificate during the taxable year authorizing a final payment to the contractor and stating that a small amount was retained for final adjustment. Held that within the meaning of art. 42-4. Regulations 101, the contract was "finally completed" in the taxable year; and that the architect's certificate supports the Commissioner's…
1Opinion of the Court
OPINION.
Tyson, Judge:
The first question presented is whether the income from the two construction contracts described in the findings of fact should be taxed as part of the petitioner’s income for the year 1938. Article 42-4 of Regulations 101, promulgated under the Revenue Act of 1938, permits the reporting of income from long term contracts “for the taxable year in which the contract is finally completed and accepted if the taxpayer elects as a consistent practice so to treat such income, provided such method clearly reflects the net income.” The provisions of that article, which have been…
2Cases cited5 opinions
- Feeney v. BardsleySupreme Court of New Jersey · 1901
- Sargeant Bros., Inc. v. BrancatiSupreme Court of New Jersey · 1930
- MacDonnell v. VitilleSupreme Court of New Jersey · 1932
- Globe Home Improvement Co. v. MichniskySupreme Court of New Jersey · 1938
- "White" Door Bed Co. v. United States Mortgage & Title Guaranty Co.Supreme Court of New Jersey · 1929
3Cited by7 opinions
- Thompson-King-Tate, Inc., a Kentucky Corporation v. United StatesCourt of Appeals for the Sixth Circuit · 1961
- Guy F. Atkinson Co. v. CommissionerUnited States Tax Court · 1984
- Ball, Ball & Brosamer, Inc. v. CommissionerCourt of Appeals for the Ninth Circuit · 1992
- Ball v. Commissioner Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1992
- EHRET-DAY CO. v. COMMISSIONERUnited States Tax Court · 1943
2 more not listed; retrieve them via the Exa API.