Montreal Mining Co. v. Commissioner
United States Tax Court
1. Held, that certain state and Federal taxes accrued by petitioner, a mining company operating on the inventory basis, are not indirect expenses incident to and necessary for the production of ore and hence are not includable as cost in valuing inventories at cost.
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1. Held, that certain state and Federal taxes accrued by petitioner, a mining company operating on the inventory basis, are not indirect expenses incident to and necessary for the production of ore and hence are not includable as cost in valuing inventories at cost. Held, further, that certain Federal and state taxes are attributable to the mineral property upon which depletion is claimed and are deductible from gross income from the property in determining net income from the property for the purpose of the limitation on percentage depletion. 2. Under petitioner's ore sales contracts…
1Opinion of the Court
OPINION.
Hill, Judge:
The first question is whether accrued state real estate, personal property, income, franchise, and miscellaneous taxes, Federal and state social security and unemployment compensation taxes, Federal capital stock tax, and Wisconsin privilege dividend tax may be included as items of cost in inventory at cost in computing gross income. Respondent contends that all such taxes, save the Wisconsin privilege dividend tax, must be treated as a deduction in ascertaining taxable net income. Respondent contends that the privilege dividend tax is a levy upon shareholders and,…
2Cases cited4 opinions
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Wisconsin v. J. C. Penney Co.Supreme Court of the United States · 1941
- Helvering v. Wilshire Oil Co.Supreme Court of the United States · 1939
- Lucas v. Kansas City Structural Steel Co.Supreme Court of the United States · 1930
3Cited by18 opinions
- Photo-Sonics, Inc. v. CommissionerUnited States Tax Court · 1964
- All-Steel Equipment, Inc. v. CommissionerUnited States Tax Court · 1970
- F. H. E. Oil Co. v. CommissionerUnited States Tax Court · 1944
- General Portland Cement Co., Cross-Appellant v. United States of America, Cross-AppelleeCourt of Appeals for the Fifth Circuit · 1980
- Idaho Power Company v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1973
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