Farm Service Cooperative v. Commissioner
United States Tax Court
Petitioner is a farm cooperative and determines its income taxes under subch. T. It conducts four activities: a broiler pool, a turkey pool, a regular pool, and a taxable activity. Members of the broiler pool or turkey pool must be members of the cooperative; members of one pool, however, need not be members of the other. Membership in each pool as well as membership in the cooperative changes from year to year.
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Petitioner is a farm cooperative and determines its income taxes under subch. T. It conducts four activities: a broiler pool, a turkey pool, a regular pool, and a taxable activity. Members of the broiler pool or turkey pool must be members of the cooperative; members of one pool, however, need not be members of the other. Membership in each pool as well as membership in the cooperative changes from year to year. The regular pool is not limited to cooperative members and obtains income from nonmember patronization. The taxable activity represents the cooperative's miscellaneous income.…
1Opinion of the Court
Wiles, Judge:
Respondent determined the following deficiencies in petitioner’s income taxes:
TYE June 30— Deficiency TYE June 30— Deficiency
1965.$50.47 1969.$12,726.02
1966.1,185.00 1970.44,601.07
1967. 839.00 1971.79,010.26
1968.5,413.66 1972.26,492.40
The issues remaining for our consideration are whether a patronage activity in a cooperative subject to the provisions of subchapter T (secs. 1381-1388)1 can incur a net operating loss. If so, we must determine whether the loss may offset income from nonpatronage activities, and whether the loss may be carried back to earlier tax years.
FINDINGS OF…
2Cases cited6 opinions
- Associated Master Barbers & Beauticians, Inc. v. CommissionerUnited States Tax Court · 1977
- Adirondack League Club v. CommissionerUnited States Tax Court · 1971
- Anaheim Union Water Company v. Commissioner of Internal Revenue, Santa Ana River Development Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
- Anaheim Union Water Co. v. CommissionerUnited States Tax Court · 1961
- Five Lakes Outing Club v. United StatesCourt of Appeals for the Eighth Circuit · 1972
1 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Concord Consumers Hous. Coop. v. CommissionerUnited States Tax Court · 1987
- Farm Service Cooperative v. Commissioner of Internal Revenue, National Council of Farmer Cooperatives, AmicusCourt of Appeals for the Eighth Circuit · 1980
- Illinois Grain Corp. v. CommissionerUnited States Tax Court · 1986
- Buckeye Countrymark v. CommissionerUnited States Tax Court · 1994
- Certified Grocers of California, Ltd. v. CommissionerUnited States Tax Court · 1987
15 more not listed; retrieve them via the Exa API.