Johnson v. Commissioner
United States Tax Court
Edwin and Harriet Johnson, husband and wife, operated a sole proprietorship which in 1956 made approximately 80 separate sales of manufactured products to Edwin's wholly owned corporation, 46 such sales being at a price which was less than the agreed cost of labor, material, and allocated overhead for the items sold, and the balance of such sales at a price in excess of such costs.
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Edwin and Harriet Johnson, husband and wife, operated a sole proprietorship which in 1956 made approximately 80 separate sales of manufactured products to Edwin's wholly owned corporation, 46 such sales being at a price which was less than the agreed cost of labor, material, and allocated overhead for the items sold, and the balance of such sales at a price in excess of such costs. Held: Under section 267(a), I.R.C. 1954, the 46 sales were sales of property at a loss for which no deduction is allowable. Section 267 (a) so interpreted is not unconstitutional. The gains on the sales in excess…
1Opinion of the Court
OPINION
Scott, Judge:
Respondent determined a deficiency in petitioners’ income tax in the amount of $4,513.16 for the calendar year 1956.
Certain issues raised by the pleadings have been disposed of by agreement of the parties, leaving for our decision the following:
Whether the amount of the excess of cost consisting of direct labor, material, and overhead allocation over sales price of certain specific sales made by Edwin H. Johnson and Harriet Blu Johnson to the wholly owned corporation of Edwin H. Johnson, whose estate is the other petitioner herein, may be used to reduce other income, or as…
2Cases cited8 opinions
- Sullenger v. CommissionerUnited States Tax Court · 1948
- Kaplan v. CommissionerUnited States Tax Court · 1953
- Commissioner of Internal Revenue v. WeismanCourt of Appeals for the First Circuit · 1952
- Weather-Seal Mfg. Co. v. CommissionerUnited States Tax Court · 1951
- Hofferbert, Collector of Internal Revenue v. Anderson Oldsmobile, IncCourt of Appeals for the Fourth Circuit · 1952
3 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Reading v. CommissionerUnited States Tax Court · 1978
- United States Holding Co. v. CommissionerUnited States Tax Court · 1965
- Estate of Edwin H. Johnson, Deceased, Harriet Blu Johnson, and Harriet Blu Johnson v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1965
- Johnson v. CommissionerUnited States Tax Court · 1964
- McGrew v. CommissionerUnited States Tax Court · 1965
4 more not listed; retrieve them via the Exa API.