Kellogg Com. Co. v. Commissioner
United States Tax Court
Petitioner, a Minnesota corporation engaged in the business of selling grain and seed on commission, for some time prior to 1944 had been indebted to a number of its shippers. This indebtedness represented the proceeds of sales handled by petitioner. The shippers left this money with petitioner, subject to their withdrawal at any time on demand. Petitioner paid interest on this money at the rate of 2 per cent per annum.
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Petitioner, a Minnesota corporation engaged in the business of selling grain and seed on commission, for some time prior to 1944 had been indebted to a number of its shippers. This indebtedness represented the proceeds of sales handled by petitioner. The shippers left this money with petitioner, subject to their withdrawal at any time on demand. Petitioner paid interest on this money at the rate of 2 per cent per annum. On or about March 31, 1944, petitioner executed in the name of each shipper to whom it was indebted a promissory note in the amount owing as of March 31, 1944, payable on…
1Opinion of the Court
OPINION.
Arundell, Judge:
The sole question herein is whether, in computing petitioner’s excess profits tax credit for 1944, the credit balances owing by petitioner to the shippers with whom it dealt and in respect to which petitioner issued promissory notes qualified as “borrowed capital” within the meaning of section 719 (a) (1) of the Internal Revenue Code.1
The corporate taxpayer’s excess profits tax credit under the invested capital method is computed upon the basis of its daily invested capital, which consists of the sum of its daily equity invested capital as determined under section 718,…
2Cases cited1 opinion
- Cartwright v. . CoppersmithSupreme Court of North Carolina · 1943
3Cited by6 opinions
- Ames Trust & Sav. Bank v. CommissionerUnited States Tax Court · 1949
- Adams Bros. Co. v. CommissionerUnited States Tax Court · 1954
- Adams Bros. Co. v. CommissionerUnited States Tax Court · 1954
- Adams Bros. Co. v. CommissionerUnited States Tax Court · 1954
- Ames Trust & Sav. Bank v. CommissionerUnited States Tax Court · 1949
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