Jacob Sincoff, Inc. v. Commissioner
United States Tax Court
1. Excess Profits -- Accumulations Beyond Business Needs -- Section 102. -- A paper jobbing corporation which accumulated earnings beyond the reasonable needs of its business and invested large amounts in securities unrelated to its business is subject to tax under section 102. 2. Excess Profits -- Credit Based on Invested Capital -- Borrowed Money -- Section 719 (a) (1). -- A balance owed in a brokerage account through which securities were being purchased does not qualify…
Read the full summary
1. Excess Profits -- Accumulations Beyond Business Needs -- Section 102. -- A paper jobbing corporation which accumulated earnings beyond the reasonable needs of its business and invested large amounts in securities unrelated to its business is subject to tax under section 102. 2. Excess Profits -- Credit Based on Invested Capital -- Borrowed Money -- Section 719 (a) (1). -- A balance owed in a brokerage account through which securities were being purchased does not qualify as indebtedness under section 719 (a) (1), Internal Revenue Code.
1Opinion of the Court
OPINION.
Murdock, Judge:
The first contention of the petitioner is that its earnings were not accumulated beyond the reasonable needs of the business and it was not availed of during 1945 for the purpose of preventing the imposition of the surtax on its stockholders within the meaning of section 102. It argues that it had two businesses, one, the paper, paperboard, and twine business, which was becoming less important, and the other, called the primary one, the securities business. The petitioner was not a mere holding or investment company during 1945 because it operated as a jobber in the…
2Cases cited8 opinions
- Parshall v. . EggertNew York Court of Appeals · 1873
- Whitney Chain & Mfg. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1945
- Peter Barrett Manufacturing Co. v. RonkNew York Court of Appeals · 1914
- Utica Trust & Deposit Co. v. DeckerNew York Court of Appeals · 1927
- Bernard Realty Co. v. United StatesCourt of Appeals for the Seventh Circuit · 1951
3 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Montgomery Co. v. CommissionerUnited States Tax Court · 1970
- Jacob Sincoff, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1953
- Belaire Management Corp. v. CommissionerUnited States Tax Court · 1954
- Wellman Operating Corp. v. CommissionerUnited States Tax Court · 1959
- Atlantic Commerce & Shipping Co. v. CommissionerUnited States Tax Court · 1973
9 more not listed; retrieve them via the Exa API.