F. & D. Rentals, Inc. v. Commissioner
United States Tax Court
1. Held, that respondent was not bound to accept the allocation of a lump-sum purchase price paid for a mixed aggregate of the operating assets of a going business purchased by petitioner, which was made by petitioner's shareholders.
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1. Held, that respondent was not bound to accept the allocation of a lump-sum purchase price paid for a mixed aggregate of the operating assets of a going business purchased by petitioner, which was made by petitioner's shareholders. Rather, respondent was free to make an independent allocation; and his allocation is approved, by reason of petitioner's failure to establish error therein. 2. Held, that petitioner, an accrual basis taxpayer, is not entitled to deductions for contributions to employees' pension plans, which it accrued but did not pay either by cash or check or promissory note,…
1Opinion of the Court
Pierce, Judge:
The respondent determined a deficiency of $98,540.50 in the petitioner’s income tax for the fiscal year ended April 30, 1958.
The issues for decision are :(1) What is the proper allocation of the lump-sum purchase price paid for the mixed aggregate of the operating assets of a going business which petitioner purchased? The precise income tax question involved concerns the computation of petitioner’s cost of goods sold for the taxable year; and this requires a determination of what portion of said lump-sum purchase price should be allocated to the inventory which petitioner…
2Cases cited9 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Hamlin's Trust v. Commissioner of Internal Revenue. Nowel's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1954
- C. D. Johnson Lumber Corp. v. CommissionerUnited States Tax Court · 1949
- Copperhead Coal Company, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1959
- De Korse v. CommissionerUnited States Tax Court · 1945
4 more not listed; retrieve them via the Exa API.
3Cited by42 opinions
- Bixby v. CommissionerUnited States Tax Court · 1972
- Buffalo Tool & Die Mfg. Co. v. CommissionerUnited States Tax Court · 1980
- Waddell v. CommissionerUnited States Tax Court · 1986
- F. & D. Rentals, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1966
- Landry v. CommissionerUnited States Tax Court · 1986
37 more not listed; retrieve them via the Exa API.