R. E. Moorhead & Son, Inc. v. Commissioner
United States Tax Court
Petitioner, a Ford car dealer, assigned a certain number of new cars to its officers, employees, and members of the Moorhead family.
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Petitioner, a Ford car dealer, assigned a certain number of new cars to its officers, employees, and members of the Moorhead family. The cars were generally held for less than 1 year and then sold. 1. Held, gain realized on the sale of petitioner's cars was ordinary income because the cars did not constitute "property used in the trade or business" within the meaning of section 1231 of the 1954 Code. 2. Held, further, petitioner is not entitled to a deduction for depreciation under section 167(a), 1954 Code, because the cars in question had a salvage value equal to their undepreciated cost.…
1Opinion of the Court
TraiN, Judge:
Respondent determined deficiencies in the income tax liability of petitioner for the calendar years 1957, 1958, and 1959 in the amounts of $8,436.22, $1,343.43, and $2,978.69, respectively. By an amendment to his answer, respondent now claims an additional deficiency of $968.42 for the year 1959.
The issues for decision are as follows:(1) Whether certain automobiles sold by petitioner in the years 1957,1958, and 1959 constituted property used in its trade or business, within the meaning of section 1231(b) of the 1954 Code;(2) Whether petitioner is entitled to an allowance for…
2Cases cited7 opinions
- Massey Motors, Inc. v. United StatesSupreme Court of the United States · 1960
- Duval Motor Company v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Johnson-McReynolds Chevrolet Corp. v. CommissionerUnited States Tax Court · 1956
- Greene-Haldeman v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1960
- United States v. Massey Motors, Inc.Court of Appeals for the Fifth Circuit · 1959
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