Federal Machine & Welder Co. v. Commissioner
United States Tax Court
1. Income from the sale of machinery manufactured for export held not accruable in 1940 when the work was substantially completed, but in 1941, when the sale was consummated and the liability of the purchaser to pay became fixed and definite. 2. Compensation paid or accrued to petitioner's president in 1941 held not excessive. 3. Bonuses for 1940 authorized and paid to petitioner's officers and employees in 1941, and not the 1941 bonuses authorized and paid in 1942, held…
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1. Income from the sale of machinery manufactured for export held not accruable in 1940 when the work was substantially completed, but in 1941, when the sale was consummated and the liability of the purchaser to pay became fixed and definite. 2. Compensation paid or accrued to petitioner's president in 1941 held not excessive. 3. Bonuses for 1940 authorized and paid to petitioner's officers and employees in 1941, and not the 1941 bonuses authorized and paid in 1942, held accruable in 1941.
1Opinion of the Court
LeMire, Judge-.
This proceeding involves deficiencies for petitioner’s taxable year ended September 30, 1941, as follows: Income tax, $76,131.11; declared value excess profits tax, $16,740.33; and excess profits tax, $158,465.94.
The questions in issue are (1) whether the income from the sale of equipment which the petitioner manufactured for export accrued in petitioner’s taxable year ended September 30, 1940, when the work was substantially completed, or in 1941, when the sale was finally consummated; (2) whether, and to what extent, if any, the compensation which the petitioner paid or…
2Cases cited9 opinions
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Commissioner of Internal Revenue v. Union Pac. R. Co.Court of Appeals for the Second Circuit · 1936
- Commissioner of Internal Revenue v. North Jersey Title Ins.Court of Appeals for the Third Circuit · 1935
- Helvering v. Nibley-Mimnaugh Lumber Co.Court of Appeals for the D.C. Circuit · 1934
- Case v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1939
4 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Home Interiors & Gifts, Inc. v. CommissionerUnited States Tax Court · 1980
- L. R. Schmaus Co. v. CommissionerUnited States Tax Court · 1967
- Federal Machine & Welder Co. v. CommissionerUnited States Tax Court · 1948
- Home Interiors & Gifts, Inc. v. CommissionerUnited States Tax Court · 1980
- King, Quirk & Co. v. CommissionerUnited States Tax Court · 1961
3 more not listed; retrieve them via the Exa API.