Lincoln Storage Warehouses v. Commissioner
United States Tax Court
Petitioner corporation, on the accrual basis, credited the account of its sole stockholder, who was on the cash basis, with certain amounts for rents, salary, and interest over a period of years up to and including 1943 and part of 1944 and, after the stockholder's death in 1944, credited the account of the stockholder's estate, which respondent determined to be on the cash basis, with further items.
Read the full summary
Petitioner corporation, on the accrual basis, credited the account of its sole stockholder, who was on the cash basis, with certain amounts for rents, salary, and interest over a period of years up to and including 1943 and part of 1944 and, after the stockholder's death in 1944, credited the account of the stockholder's estate, which respondent determined to be on the cash basis, with further items. Petitioner made cash payments in 1943 to the stockholder and in 1944 to the stockholder and to his estate. There was no application either by petitioner or by the recipients of any of these…
1Opinion of the Court
OPINION.
Harlan, Judge:
Respondent disallowed the deduction by petitioner of $27,132.66 in its income tax return for 1943, of which the amount of $20,330.95 is in controversy, and of $1,816.85 in its income tax return for 1944. The disallowances were computed as set forth in our findings of fact. We shall discuss these disallowances in the order named.
Respondent’s position is that the amount of $20,330.95, which allegedly represents rents and salary paid by petitioner to Reginald T. Blauvelt, Sr., for 1943, was never paid to Blauvelt in 1943 or within two and one-half months after the close…
2Cases cited7 opinions
- United States v. KirkpatrickSupreme Court of the United States · 1824
- Aluminum Castings Co. v. RoutzahnSupreme Court of the United States · 1930
- McConway & Torley Corp. v. CommissionerUnited States Tax Court · 1943
- Long v. Republic Varnish Enamel & Lacquer Co.Supreme Court of New Jersey · 1934
- Naidech v. HempflingSupreme Court of New Jersey · 1941
2 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Brown v. CommissionerUnited States Tax Court · 1961
- Chicago & N. W. R. Co. v. CommissionerUnited States Tax Court · 1958
- North American Service Co. v. CommissionerUnited States Tax Court · 1960
- Frelbro Corp. v. CommissionerUnited States Tax Court · 1961
- Lincoln Storage Warehouses v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1950
10 more not listed; retrieve them via the Exa API.