Hercules Motors Corp. v. Commissioner
United States Board of Tax Appeals
Trade acceptances, received by petitioner in payment of goods sold and disposed of at less than their face value, constitute property held primarily for sale to customers in the ordinary course of trade or business. (Sec. 117(b), Revenue Act of 1934.)
1Opinion of the Court
*1000OPINION.
Van Fossan :
The issue is whether or not, under the circumstances here presented, trade acceptances constituted capital assets within the meaning of section 117 (b) of the Revenue Act of 1934.1 In each instance the determination of the question must rest on the facts of the case. The character of the taxpayer’s business, the methods of its operation, the measures required to carry it on, and all acts and transactions incidental to such business must be considered.
Here the petitioner’s primary business was the manufacture and sale of motors and motor parts and accessories. In order to…
2Cited by8 opinions
- Hoover Co. v. CommissionerUnited States Tax Court · 1979
- Graham Mill & Elevator Co. v. ThomasCourt of Appeals for the Fifth Circuit · 1945
- City Stores Co. v. United StatesDistrict Court, E.D. Pennsylvania · 1964
- Exposition Souvenir Corp. v. CommissionerUnited States Tax Court · 1945
- Hercules Motors Corp. v. CommissionerUnited States Board of Tax Appeals · 1939
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