Phillips v. Commissioner
United States Tax Court
1. Income -- Constructive Receipt -- Cooperative -- Revolving Fund Certificates. -- Amounts retained from marketing operations of a cooperative performed on behalf of members, for which amounts it voluntarily issued revolving fund certificates having no fair market value, which amounts belonged to and represented taxable income of the cooperative and were not made available to the members, were not income of the members for the year in which they were retained. 2. Deduction…
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1. Income -- Constructive Receipt -- Cooperative -- Revolving Fund Certificates. -- Amounts retained from marketing operations of a cooperative performed on behalf of members, for which amounts it voluntarily issued revolving fund certificates having no fair market value, which amounts belonged to and represented taxable income of the cooperative and were not made available to the members, were not income of the members for the year in which they were retained. 2. Deduction -- Expense -- Amounts Realized -- Revolving Fund Certificate -- Pre-Existing Obligation -- Section 23 (a). -- An amount…
1Opinion of the Court
OPINION.
Murdock, Judge:
The Cooperative was under no obligation either to return the amounts to the members or to issue revolving fund certificates for the amounts it retained as a reserve from marketing operations. They belonged to and were taxable income of the Cooperative. Dr. P. Phillips Cooperative, 17 T. C. 1002. Cf. Harbor Plywood Corporation, 14 T. C. 158, affirmed per curiam 187 F. 2d 784; George Bradshaw, 14 T. C. 162, both of which dealt with amounts which did not belong to or represent taxable income of the cooperative there in question. Dr. P. Phillips Cooperative voluntarily…
2Cases cited5 opinions
- Union Trust Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1940
- Acampo Winery & Distilleries, Inc. v. CommissionerUnited States Tax Court · 1946
- Harbor Plywood Corp. v. CommissionerUnited States Tax Court · 1950
- M & E Corp. v. CommissionerUnited States Tax Court · 1946
- American Surety Co. Of New York v. InmonCourt of Appeals for the Fifth Circuit · 1951
3Cited by6 opinions
- Carpenter v. CommissionerUnited States Tax Court · 1953
- Caswell v. CommissionerUnited States Tax Court · 1952
- Carpenter v. CommissionerUnited States Tax Court · 1953
- Caswell v. CommissionerUnited States Tax Court · 1952
- Howey v. CommissionerUnited States Tax Court · 1954
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