Missisquoi Corp. v. Commissioner
United States Tax Court
1. Petitioner acquired debentures in 1950 to assure itself of a supply of raw materials which were used to make its product and which were scarce at the time. The demand for the raw materials lessened in 1951 and by 1953 market conditions required petitioner to use a different raw material. Petitioner held the debentures until 1955 when they were sold at a loss.
Read the full summary
1. Petitioner acquired debentures in 1950 to assure itself of a supply of raw materials which were used to make its product and which were scarce at the time. The demand for the raw materials lessened in 1951 and by 1953 market conditions required petitioner to use a different raw material. Petitioner held the debentures until 1955 when they were sold at a loss. Held, the loss on the sale of the debentures in 1955 was a capital loss. 2. Petitioner failed to prove that respondent erred in disallowing as a deduction for 1955 a part of the Vermont corporation franchise tax accrued on its books…
1Opinion of the Court
DRENNEN, Judge:
Respondent determined a deficiency in petitioner’s income tax for the taxable year 1955 in the amount of $16,521.54 There are two issues for decision: (1) Whether the loss incurred by petitioner in 1955 on the sale of debentures held by it is an ordinary business loss or a long-term capital loss, and (2) whether respondent erred in disallowing as a deduction for 1955 that part of the Vermont corporation franchise tax accrued by petitioner for 1955 but not paid until 1958.
FINDINGS OF FACT.
Some of the facts are stipulated and they are hereby found as stipulated.
Petitioner…
2Cases cited12 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Dixie Pine Products Co. v. CommissionerSupreme Court of the United States · 1944
- Commissioner of Internal Revenue v. The Bagley & Sewall Co.Court of Appeals for the Second Circuit · 1955
7 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- W. W. Windle Co. v. CommissionerUnited States Tax Court · 1976
- Waterman, Largen & Co., Inc. v. The United StatesUnited States Court of Claims · 1969
- Fs Services, Inc., a Delaware Corporation, as Successor by Merger to Illinois Farm Supply Company, an Illinois Corporation v. The United StatesUnited States Court of Claims · 1969
- The Dearborn Company v. The United States. The Dearborn Company v. The United StatesUnited States Court of Claims · 1971
- Chemplast, Inc. v. CommissionerUnited States Tax Court · 1973
16 more not listed; retrieve them via the Exa API.