Basse v. Commissioner
United States Tax Court
1. The petitioners operate a chain retail grocery business. Prior to 1941 they reported their inventory on the basis of cost. Held, that for 1941 they were entitled to report their inventory on the elective or last in, first out basis authorized by section 22 (d) of the Internal Revenue Code. 2. During 1941 the petitioners made three trips.
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1. The petitioners operate a chain retail grocery business. Prior to 1941 they reported their inventory on the basis of cost. Held, that for 1941 they were entitled to report their inventory on the elective or last in, first out basis authorized by section 22 (d) of the Internal Revenue Code. 2. During 1941 the petitioners made three trips. Concededly, none of the trips was entirely for business purposes and on none of them did the business activity of the petitioners amount to more than calling on concerns whose products were sold by petitioners in their grocery business and seeing what such…
1Opinion of the Court
OPINION.
Turner, Judge:
The history of section 22 (d) of the Internal Revenue Code,1 which authorizes the use of the lifo method, and the effect of the use of that method were considered by us at length in Hutzler Brothers Co., 8 T. C. 14. We pointed out there that the use of the method was originally limited to taxpayers engaged in certain types of business, but that the Revenue Act of 1939 made the method available to all taxpayers, regardless of the type of business in which they are engaged. As was indicated in that case, it is common in a period of rising prices that the same number of…
2Cases cited1 opinion
- Hutzler Bros. Co. v. CommissionerUnited States Tax Court · 1947
3Cited by20 opinions
- Fox Chevrolet, Inc. (Maryland) v. CommissionerUnited States Tax Court · 1981
- Peninsula Steel Products & Equipment Co. v. CommissionerUnited States Tax Court · 1982
- Reco Industries, Inc. v. CommissionerUnited States Tax Court · 1984
- R. H. MacY & Co., Inc., L. Bamberger & Co., Davison-Paxon Co., and the La Salle & Koch Company v. United StatesCourt of Appeals for the Second Circuit · 1958
- Klein Chocolate Co. v. CommissionerUnited States Tax Court · 1959
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