Clay Sewer Pipe Asso. v. Commissioner
United States Tax Court
Petitioner was organized by producers of clay sewer pipe to promote the use and sale of such pipe. In carrying out this purpose it furnished its services to the subscribers therefor, who were also its stockholders, for 24 cents per ton of clay sewer pipe sold by them respectively. Such receipts of petitioner during the taxable year exceeded its expenditures for the same period.
Read the full summary
Petitioner was organized by producers of clay sewer pipe to promote the use and sale of such pipe. In carrying out this purpose it furnished its services to the subscribers therefor, who were also its stockholders, for 24 cents per ton of clay sewer pipe sold by them respectively. Such receipts of petitioner during the taxable year exceeded its expenditures for the same period. Though petitioner made no contracts during the taxable year to pay any future specific items of expense, its president promised to spend this excess in the following years in furnishing the services for which it was…
1Opinion of the Court
OPINION.
T/wanTT, Jvdg&:
Petitioner reported gross income for the taxable year in the amount of $107,648.18, which included all its receipts for services to subscribers. In the determination of the deficiency, respondent did not adjust that item. He allowed deductions of $2,280.92 not claimed on the return and disallowed deductions of “organization expense” and “production expense” in the amounts of $330.83 and $2,066.63, respectively, as claimed on the return, and $32,347.23 deducted in the return as a “Reserve for future expenses.” In its petition, petitioner “consents that the deductions…
2Cases cited4 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Brown v. HelveringSupreme Court of the United States · 1934
- West Side Tennis Club v. CommissionerUnited States Tax Court · 1942
3Cited by21 opinions
- Krim-Ko Corp. v. CommissionerUnited States Tax Court · 1951
- Automobile Club of New York, Inc. v. CommissionerUnited States Tax Court · 1959
- Farmers Cooperative Co. v. BirminghamDistrict Court, N.D. Iowa · 1949
- Your Health Club, Inc. v. CommissionerUnited States Tax Court · 1944
- Mooney Aircraft, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1970
16 more not listed; retrieve them via the Exa API.