Weaver v. Comm'r
United States Tax Court
P owned 80-percent interests in an S corporation (CL) and a C corporation (J). CL is an accrual method, calendar year taxpayer. J is a cash method, fiscal year taxpayer with a July 31 yearend. On each of its 1996 and 1997 Federal income tax returns, CL deducted an amount owed to J for services which J rendered to CL during the corresponding year.
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P owned 80-percent interests in an S corporation (CL) and a C corporation (J). CL is an accrual method, calendar year taxpayer. J is a cash method, fiscal year taxpayer with a July 31 yearend. On each of its 1996 and 1997 Federal income tax returns, CL deducted an amount owed to J for services which J rendered to CL during the corresponding year. J included in its gross income for its taxable years ended in 1997 and 1998 the amounts deducted by CL for 1996 and 1997, respectively. CL had not as of Mar. 15, 1997 and 1998, paid to J any of those amounts which J included in its gross income. Held…
1Opinion of the Court
OPINION
Laro, Judge:
This case is before the Court for decision on the basis of stipulated facts. See Rule 122. Petitioners petitioned the Court to redetermine deficiencies of $11,284 and $12,913 in their 1996 and 1997 Federal income tax, respectively.
Following concessions, we are left to decide whether sections 404(d) and 461(h) require that Clarkston Window & Door, Inc. (Clarkston), an accrual method S corporation, defer its deductions of fees owed to J.D. Weaver & Associates, Inc. (J.D.), a cash method C corporation, for services provided by J.D. to Clarkston. Clarkston reports its…
2Cases cited9 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Don E. Williams Co. v. CommissionerSupreme Court of the United States · 1977
- C. M. Gooch Lumber Sales Co. v. CommissionerUnited States Tax Court · 1968
- Truck & Equipment Corp. v. CommissionerUnited States Tax Court · 1992
- G. M. Gooch Lumber Sales Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1969
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- Jimmy D. and Marlene M. Morloc Weaver v. CommissionerUnited States Tax Court · 2003
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