Ohio Loan & Discount Co. v. Commissioner
United States Tax Court
Petitioner, under a system of accounting it followed, without question, consistently for many years, included in income reported for the taxable year collections in such year of bad debts charged in prior years to its reserve for bad debts. Respondent eliminated this item from gross income and added it to the balance in the reserve.
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Petitioner, under a system of accounting it followed, without question, consistently for many years, included in income reported for the taxable year collections in such year of bad debts charged in prior years to its reserve for bad debts. Respondent eliminated this item from gross income and added it to the balance in the reserve. This action resulted in a decrease in petitioner's gross income other than "personal holding company income," so that the latter was in excess of 80 percent of the total gross income, resulting in the classification of petitioner as a personal holding company, the…
1Opinion of the Court
OPINION.
Leech, Judge:
Respondent has determined a deficiency in personal holding company surtax for the year 1939 of $22,918.95 and a penalty of $5,729.74.1 This determination was based upon respondent’s action in eliminating an item of $25,510.28 included by petitioner in its income returned for that year and representing recoveries made in that year on debts charged off as worthless in prior years. This adjustment resulted in a decrease in petitioner’s gross income other than personal holding company income to less than 20 percent of total gross income and the consequent imposition of a…
2Cases cited4 opinions
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
- Helvering v. New York Trust Co.Supreme Court of the United States · 1934
- Helvering v. Wilshire Oil Co.Supreme Court of the United States · 1939
3Cited by12 opinions
- Handelman v. CommissionerUnited States Tax Court · 1961
- McCamant v. CommissionerUnited States Tax Court · 1959
- Hotel Kingkade v. CommissionerUnited States Tax Court · 1949
- Boyd-Richardson Co. v. CommissionerUnited States Tax Court · 1945
- J.F. Johnson Lumber Co. v. CommissionerUnited States Tax Court · 1944
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