Heer-Andres Inv. Co. v. Commissioner
United States Tax Court
1. Petitioner, lessor of a building, was entitled to receive not only fixed monthly rent, but also additional rent measured by the net sales of its lessee during petitioner's fiscal year, ended January 31, such additional rent being payable within the first 10 days of the following February. Held, such additional rent must be accrued as income for the year with respect to which it was due and not for the succeeding year when it was payable.
Read the full summary
1. Petitioner, lessor of a building, was entitled to receive not only fixed monthly rent, but also additional rent measured by the net sales of its lessee during petitioner's fiscal year, ended January 31, such additional rent being payable within the first 10 days of the following February. Held, such additional rent must be accrued as income for the year with respect to which it was due and not for the succeeding year when it was payable. United States v. Anderson, 269 U.S. 422, followed. 2. Petitioner's practice had been to report the additional rent as income for the year in which it was…
1Opinion of the Court
OPINION.
Raum, Judge:
Deficiencies determined against petitioner are in controversy for the fiscal year ended January 31, 1946, in declared value excess-profits tax and income tax of $7,213.04 and $21,969.29, respectively, and in income tax for fiscal 1947 in the amount of $8,838.10. The question is the proper year for reporting the accrual of rent due petitioner under a long term lease.
All of the facts are stipulated and are hereby found accordingly. Petitioner is a Missouri corporation located in Springfield, Missouri. It keeps its books and files its tax returns with the collector for the…
2Cases cited7 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Commissioner of Internal Revenue v. Mnookin's EstateCourt of Appeals for the Eighth Circuit · 1950
- Mnookin v. CommissionerUnited States Tax Court · 1949
- Frame v. CommissionerUnited States Tax Court · 1951
- Carver v. CommissionerUnited States Tax Court · 1948
2 more not listed; retrieve them via the Exa API.
3Cited by26 opinions
- Cox v. CommissionerUnited States Tax Court · 1965
- Pacific Grape Products Co., a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- American Can Co. v. CommissionerUnited States Tax Court · 1961
- Avco Mfg. Corp. v. CommissionerUnited States Tax Court · 1956
- Travis v. CommissionerUnited States Tax Court · 1967
21 more not listed; retrieve them via the Exa API.