General Tire & Rubber Co. v. Commissioner
United States Tax Court
Petitioner, a manufacturer of coated fabrics, engaged in a program of research resulting in the development of a resin coating known as Tolex.
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Petitioner, a manufacturer of coated fabrics, engaged in a program of research resulting in the development of a resin coating known as Tolex. Held, a portion of the income resulting from the sale of Tolex constitutes net abnormal income resulting from research and development within the meaning of section 721 (a) (2) (C), I. R. C. 1939, and is allocable to the years during which the research and development program was in operation, pursuant to section 721 (b), I. R. C. 1939.
1Opinion of the Court
OPINION.
Withey, Judge:
The question here presented is whether the taxpayer is entitled to the relief accorded by section 721 (a) (2) (C) of the 1939 Code1 because of a realization during 1942, 1948, 1944, and 1945 of abnormal income due to exploration, discovery, research, or development attributable to prior years.
The taxpayer seeks to qualify for relief under section 721 (a) (2) (C) on the basis of a class of income resulting from conducting research and development of tangible property during the period 1981 to 1940.
The respondent contends that the product in question, Tolex, did not result…
2Cases cited5 opinions
- Ramsey Accessories Mfg. Corp. v. CommissionerUnited States Tax Court · 1948
- William M. Bailey Co. v. CommissionerUnited States Tax Court · 1950
- Keystone Brass Works v. CommissionerUnited States Tax Court · 1949
- Pantasote Leather Co. v. CommissionerUnited States Tax Court · 1949
- Ohio Machine Tool Co. v. CommissionerUnited States Tax Court · 1952
3Cited by1 opinion
- General Tire & Rubber Co. v. CommissionerUnited States Tax Court · 1958