Wise v. Commissioner
United States Tax Court
Petitioners entered into a cost-plus-fixed-fee contract with a building contractor to construct an addition to their home. Michigan sales tax (imposed on retail sellers) was imposed on the contractor's purchases from his suppliers and generally separately listed on the suppliers' invoices to the contractor. The contractor paid the amounts of these taxes to his suppliers.
Read the full summary
Petitioners entered into a cost-plus-fixed-fee contract with a building contractor to construct an addition to their home. Michigan sales tax (imposed on retail sellers) was imposed on the contractor's purchases from his suppliers and generally separately listed on the suppliers' invoices to the contractor. The contractor paid the amounts of these taxes to his suppliers. Petitioners' contract payments of "The net cost of all labor & material" included amounts on account of these taxes. Held, petitioners did not pay Michigan sales taxes to the sellers in the retail sales Michigan chose to tax…
1Opinion of the Court
Chabot, Judge'.
Respondent determined a deficiency in Federal individual income tax against petitioners for 1973 in the amount of $454. The issue for decision is whether petitioners may deduct under section 1641 sales taxes paid (or deemed paid) by a contractor on materials used in constructing an addition to petitioners’ residence.
FINDINGS OF FACT
Some of the facts have been stipulated; the stipulation and the stipulated exhibits are incorporated herein by this reference.
When the petition in this case was filed, petitioners Benjamin W. Wise and Rosemarie Wise, husband and wife, resided in…
2Cases cited7 opinions
- Magruder v. SuppleeSupreme Court of the United States · 1942
- Boyer-Campbell Co. v. FryMichigan Supreme Court · 1935
- Federal Reserve Bank v. Department of RevenueMichigan Supreme Court · 1954
- Armentrout v. CommissionerUnited States Tax Court · 1964
- Sims v. Firestone Tire & Rubber Co.Michigan Supreme Court · 1976
2 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Dewey v. Comm'rUnited States Tax Court · 2010
- Karpinski v. CommissionerUnited States Tax Court · 1983
- Naso v. Comm'rUnited States Tax Court · 2010
- Stokes v. CommissionerUnited States Tax Court · 1985
- Wise v. CommissionerUnited States Tax Court · 1982