Lorenz Co. v. Commissioner
United States Tax Court
A taxpayer which in 1942 and 1943 computed its excess profits credit by the income method discontinued a contracting branch of its business in 1929, selling such branch to X. X purchased from it materials and used equipment aggregating in price $ 27,000, charged to an open account on the taxpayer's books, and over the succeeding eight years purchased very large quantities of materials, which were also charged to open accounts.
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A taxpayer which in 1942 and 1943 computed its excess profits credit by the income method discontinued a contracting branch of its business in 1929, selling such branch to X. X purchased from it materials and used equipment aggregating in price $ 27,000, charged to an open account on the taxpayer's books, and over the succeeding eight years purchased very large quantities of materials, which were also charged to open accounts. Payments aggregating $ 281,000 were credited to the accounts. In 1937 the taxpayer charged off and deducted as a bad debt a debit balance of $ 12,000 in the remaining…
1Opinion of the Court
Lorenz Co., Petitioner, v. Commissioner of Internal Revenue, Respondent
Lorenz Co. v. Commissioner
Docket No. 11093
United States Tax Court
12 T.C. 263; 1949 U.S. Tax Ct. LEXIS 266;
February 28, 1949, Promulgated
Decision will be entered under Rule 50.
A taxpayer which in 1942 and 1943 computed its excess profits credit by the income method discontinued a contracting branch of its business in 1929, selling such branch to X. X purchased from it materials and used equipment aggregating in price $ 27,000, charged to an open account on the taxpayer's books, and over the succeeding eight years purchased…
2Cases cited8 opinions
- William Leveen Corp. v. CommissionerUnited States Tax Court · 1944
- Harris Hardwood Co. v. CommissionerUnited States Tax Court · 1947
- R. C. Harvey Co. v. CommissionerUnited States Tax Court · 1945
- E. B. & A. C. Whiting Co. v. CommissionerUnited States Tax Court · 1948
- City Auto Stamping Co. v. CommissionerUnited States Tax Court · 1946
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