Bowen v. Commissioner
United States Tax Court
A partnership furnished equipment to the Government during 1941 for use at construction work to which the Government took title during 1942. The value of each item of equipment was agreed upon. Monthly payments called rent were made. The monthly payments were treated as equity of the Government under the agreements. Title was to pass to the Government when the monthly payments equaled value plus charges for interest at the rate of 1 per cent of value per month plus freight.
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A partnership furnished equipment to the Government during 1941 for use at construction work to which the Government took title during 1942. The value of each item of equipment was agreed upon. Monthly payments called rent were made. The monthly payments were treated as equity of the Government under the agreements. Title was to pass to the Government when the monthly payments equaled value plus charges for interest at the rate of 1 per cent of value per month plus freight. The Government could take title upon completion of work by a further payment which, added to monthly payments, would…
1Opinion of the Court
OPINION.
HaRROn, Judge-.
In his original determination respondent applied the provisions of I. T. 3533, C. B. 1941-1, p. 87; as amended by I. T. 3631, C. B. 1943, p. 197. That is to say, he gave recognition to the fact that the Government took title to all of the equipment in 1942 and determined that a proportionate part of the profit, $66,692.36, was allocable to the year 1941. The ruling set forth in I. T. 3533 is one which permits a taxpayer to allocate the profits fróm a contract, such as we have before us in this proceeding, among the years during which the contract is in force. However,…
2Cases cited9 opinions
- Mills v. CommissionerUnited States Tax Court · 1948
- Gilken Corp. v. CommissionerUnited States Tax Court · 1948
- Union Stock-Yards & Transit Co. v. Western Land & Cattle Co.Court of Appeals for the Seventh Circuit · 1893
- Central Union Gas Co. v. . BrowningNew York Court of Appeals · 1913
- Vermont Acceptance Corp. v. WiltshireSupreme Court of Vermont · 1931
4 more not listed; retrieve them via the Exa API.
3Cited by56 opinions
- Estate of Thomas v. CommissionerUnited States Tax Court · 1985
- Haggard v. CommissionerUnited States Tax Court · 1955
- Coleman v. CommissionerUnited States Tax Court · 1986
- Gleis v. CommissionerUnited States Tax Court · 1955
- Breece Veneer and Panel Company v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1956
51 more not listed; retrieve them via the Exa API.