Bailey v. Commissioner
United States Tax Court
Ps purchased two boats (one in 1979 and the other in 1980) for business purposes. They paid California State sales taxes in connection with such purchases, and claimed deductions for such taxes. Respondent denied the deductions, contending that the incidence of the California sales tax falls on the retailer, not the consumer, and therefore such taxes must be capitalized as part of the cost of the boats.
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Ps purchased two boats (one in 1979 and the other in 1980) for business purposes. They paid California State sales taxes in connection with such purchases, and claimed deductions for such taxes. Respondent denied the deductions, contending that the incidence of the California sales tax falls on the retailer, not the consumer, and therefore such taxes must be capitalized as part of the cost of the boats. Held, the California State sales tax is a tax imposed upon the consumer (United States v. California State Board of Equalization), 650 F.2d 1127 (9th Cir. 1981), affd. 456 U.S. 901 (1982),…
1Opinion of the Court
Walter and Mary Bailey and Fidel and Wilma Garcia, Petitioners v. Commissioner of Internal Revenue, Respondent
Bailey v. Commissioner
Docket No. 24625-82
United States Tax Court
88 T.C. 900; 1987 U.S. Tax Ct. LEXIS 49; 88 T.C. No. 49;
April 14, 1987. April 14, 1987, Filed
Decision will be entered under Rule 155.
Ps purchased two boats (one in 1979 and the other in 1980) for business purposes. They paid California State sales taxes in connection with such purchases, and claimed deductions for such taxes. Respondent denied the deductions, contending that the incidence of the California sales tax falls…
2Cases cited10 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Western Lithograph Co. v. State Board of EqualizationCalifornia Supreme Court · 1938
- United States v. California State Board of EqualizationCourt of Appeals for the Ninth Circuit · 1981
- Diamond National Corp. v. State Board of EqualizationSupreme Court of the United States · 1976
- De Aryan v. AkersCalifornia Supreme Court · 1939
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