Smith Leasing Co. v. Commissioner
United States Tax Court
Petitioner, a closely held corporation engaged in the operation of a truck-leasing business, acquired all the assets of a partnership in a nontaxable exchange on January 2, 1958. Petitioner, as had the partnership, kept no inventory of supplies but charged the cost thereof directly to expense.
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Petitioner, a closely held corporation engaged in the operation of a truck-leasing business, acquired all the assets of a partnership in a nontaxable exchange on January 2, 1958. Petitioner, as had the partnership, kept no inventory of supplies but charged the cost thereof directly to expense. On January 2, 1959, petitioner's stockholders formally adopted a plan of complete liquidation and dissolution pursuant to section 337, I.R.C. 1954, and immediately sold all of its assets to another corporation at specific prices previously agreed upon for each of the assets sold. Held: 1. Respondent…
1Opinion of the Court
DeeNNek, Judge:
Respondent determined a deficiency in petitioner’s income tax for the calendar year 1958 in the amount of $23,781.50.
The issues for decision are: (1) Whether petitioner may deduct the cost of certain supplies purchased during the taxable year 1958, (2) whether petitioner is entitled to deduct the expenses incurred in the operation of two automobiles, and (3) whether petitioner is entitled to a deduction for depreciation on certain assets used in its business during the year 1958 where the prices it received on the sale of those assets on January 2,1959, in connection with a…
2Cases cited11 opinions
- Massey Motors, Inc. v. United StatesSupreme Court of the United States · 1960
- Casey v. CommissionerUnited States Tax Court · 1962
- Hertz Corp. v. United StatesSupreme Court of the United States · 1960
- Weir Long Leaf Lumber Co. v. CommissionerUnited States Tax Court · 1947
- Bertrand W. Cohn v. United States of America, William R. Kent v. United States of America, Louise C. Kent v. United StatesCourt of Appeals for the Sixth Circuit · 1958
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