E. B. Elliott Co. v. Commissioner
United States Board of Tax Appeals
1. Petitioner is engaged in the outdoor advertising business and keeps its books on the accrual basis. It received advance payments on contracts to be performed after the taxable year. No restrictions were imposed upon petitioner's use of the prepayments.
Read the full summary
1. Petitioner is engaged in the outdoor advertising business and keeps its books on the accrual basis. It received advance payments on contracts to be performed after the taxable year. No restrictions were imposed upon petitioner's use of the prepayments. Held, advance payments received by petitioner during the taxable year are includible in gross income of that year. 2. In the taxable year petitioner paid $4,000 in compromise of litigation brought against it involving substantially the same issues as a previous suit which it had won. Both suits attacked petitioner's title to property. Held,…
1Opinion of the Court
*86OPINION.
Kern :
The first issue for our consideration is whether advance payments on advertising contracts to be performed after the taxable year are income to petitioner in the year of receipt. Petitioner contends that the prepayments represented advances for the purpose of defraying initial costs of erection of structures and were income only in the year petitioner performed the services for which the advance payments were made. Kespondent argues that petitioner was not restricted in its use of the prepaid amounts and that the payments were income to petitioner in the taxable year.
The…
2Cases cited5 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Lewis v. ReynoldsSupreme Court of the United States · 1932
- Illinois Terminal Co. v. United StatesUnited States Court of Claims · 1931
3Cited by20 opinions
- Beacon Publishing Company, a Kansas Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1955
- Automobile Club of New York, Inc. v. CommissionerUnited States Tax Court · 1959
- Hoboken Land & Improvement Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1943
- Bartlett v. DelaneyCourt of Appeals for the First Circuit · 1949
- Cooperstown Corp. v. Commissioner of Internal Rev.Court of Appeals for the Third Circuit · 1944
15 more not listed; retrieve them via the Exa API.