Standard Paving Co. v. Commissioner
United States Tax Court
1. Corporation A, on its own behalf and as a member of joint ventures, entered into long term construction contracts. While the contracts were in the course of being completed, it transferred all of its assets to corporation B, its parent, in a nontaxable reorganization. Thereafter the contracts were completed by the transferee. Both corporations reported income from long term contracts by the completed contract method.
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1. Corporation A, on its own behalf and as a member of joint ventures, entered into long term construction contracts. While the contracts were in the course of being completed, it transferred all of its assets to corporation B, its parent, in a nontaxable reorganization. Thereafter the contracts were completed by the transferee. Both corporations reported income from long term contracts by the completed contract method. Held, that under the circumstances it was proper for the Commissioner to allocate to corporation A, under section 41 of the code, income earned under the contracts based upon…
1Opinion of the Court
OPINION.
Disney, Judge:(1) Oklahoma Standard and Delaware Standard were on an accrual basis of accounting and reported income from long term construction contracts on the completed contract basis. The contracts entered into by Oklahoma Standard for the Gruber, Dalhart, and Memorial Boulevard projects1 were incomplete at the close of September 20, 1942, when Delaware Standard succeeded Oklahoma Standard in a transaction the parties agree was a nontaxable reorganization under the provisions of section 112 of the Internal Bevenue Code. Oklahoma Standard did not in its final return for the period…
2Cases cited24 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Helvering v. CliffordSupreme Court of the United States · 1940
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- United States v. AndersonSupreme Court of the United States · 1926
19 more not listed; retrieve them via the Exa API.
3Cited by43 opinions
- Foster v. Comm'rUnited States Tax Court · 1983
- Standard Paving Co. v. Commissioner of Internal Revenue. Standard Paving Co. v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1951
- Trinco Industries, Inc. v. CommissionerUnited States Tax Court · 1954
- Henry C. Beck Builders, Inc. v. CommissionerUnited States Tax Court · 1964
- Kuckenberg v. CommissionerUnited States Tax Court · 1960
38 more not listed; retrieve them via the Exa API.