Lastarmco, Inc. v. Comm'r
United States Tax Court
During its taxable year ended June 30, 1975, petitioner was entitled to deductions both for dividends received under sec. 243(a)(1), I.R.C. 1954, and percentage depletion under sec. 613A(c). Both deductions are limited by different sections of the Code to a stated percentage of petitioner's taxable income. The phrase "taxable income" is modified by each of those sections.
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During its taxable year ended June 30, 1975, petitioner was entitled to deductions both for dividends received under sec. 243(a)(1), I.R.C. 1954, and percentage depletion under sec. 613A(c). Both deductions are limited by different sections of the Code to a stated percentage of petitioner's taxable income. The phrase "taxable income" is modified by each of those sections. Neither limitation takes the existence of the other into account, and thereby draws into question their proper computations. Held, the deductions should be ranked, with subtraction of the sec. 613A(c) deduction placed before…
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined deficiencies in petitioner’s Federal income taxes for the fiscal years ended June 30,1972, and June 30,1975, in the amounts of $9,882 and $8,245, respectively.
This case was submitted fully stipulated pursuant to Rule 122.1 The stipulation of facts and attached exhibits are incorporated herein by reference.
Respondent determined that petitioner is limited by section 246(b)(1)2 to a lower section 243(a)(1) deduction for dividends received by petitioner during its fiscal year ended June 30, 1975 (hereinafter the 1975 year), than was claimed. In that…
2Cases cited16 opinions
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Train v. Colorado Public Interest Research Group, Inc.Supreme Court of the United States · 1976
- White v. United StatesSupreme Court of the United States · 1938
- Miller v. YouakimSupreme Court of the United States · 1979
- United States v. CalamaroSupreme Court of the United States · 1957
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- Lastarmco, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1984
- Zeta Beta Tau Fraternity, Inc. v. CommissionerUnited States Tax Court · 1986
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