Atlantic Coast Realty Co. v. Commissioner
United States Board of Tax Appeals
1. A corporation engaged in buying and selling lands is not entitled, under section 203, Revenue Act 1918, to have its income determined by the use of inventories where the Commissioner has by regulation ruled generally that such inventories are not required and the proof does not indicate that such use is in conformity with the best accounting practice but tends rather to show such use to be impractical. 2. The discrimination in this respect as between taxpayers dealing in…
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1. A corporation engaged in buying and selling lands is not entitled, under section 203, Revenue Act 1918, to have its income determined by the use of inventories where the Commissioner has by regulation ruled generally that such inventories are not required and the proof does not indicate that such use is in conformity with the best accounting practice but tends rather to show such use to be impractical. 2. The discrimination in this respect as between taxpayers dealing in land and those dealing in merchandise is not unlawful.
1Opinion of the Court
*418OPINION.
SteRnhagen :
The taxpayer with its affiliated corporation was engaged in buying and selling land for profit. When it filed its consolidated return for 1918 it claimed for the first time that its income should be determined by the use of a so-called inventory of its lands at market value, and upon that basis it reported net income of $14,204.39 and paid a tax of $1,464.53. The Commissioner treated the so-called inventory as a “ charge down of real estate ” and disallowed it, together with several other items not in dispute. He added $72,962.75 to the income by reason of such…
2Cited by19 opinions
- W. C. & A. N. Miller Dev. Co. v. CommissionerUnited States Tax Court · 1983
- Black v. CommissionerUnited States Tax Court · 1960
- Homes by Ayres v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1986
- Loughborough Dev. Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- RACMP Enters. v. CommissionerUnited States Tax Court · 2000
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