Gude Bros., Kiefer Co. v. Commissioner

1. The taxpayer set up certain reserves which it undertook to deduct from the taxable income for the year in which they were set up. Held, that the deduction could not be allowed in such year. 2. The taxpayer purchased certain property in 1917 which it ceased to use during the taxable year, sold a portion thereof and charged the balance to loss. Held, in the absence of proof of cost of the portion sold, that the transaction was not closed until all the property was finally disposed of in a later year and no deduction is allowable in the taxable year. 3. The taxpayer purchased certain property…