Petty v. Commissioner
United States Tax Court
Petitioners entered into a contract with a builder to construct their residence. In the process of construction, the builder incurred various material and other costs including State and local sales taxes. Held, under North Carolina law, sales taxes were imposed on the material suppliers and were passed on to the builder by the suppliers, and accordingly, petitioners are not entitled to deduct such sales taxes under sec. 164, I.R.C. 1954.
1Opinion of the Court
Sterrett, Judge'.
In his notice of deficiency dated May 15, 1979, respondent determined a deficiency in petitioners’ Federal income tax of $1,755.50 for the 1976 calendar year. The sole issue for decision is whether, in 1976, the petitioners are entitled to a sales tax deduction under section 164(a)(4), I.R.C. 1954, of $3,511.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts, together with the exhibits attached thereto, is incorporated herein by this reference.
Petitioners Jerry M. and Audrey Petty, husband and wife, resided in Charlotte, N. C.,…
2Cases cited13 opinions
- Vaughn v. North Carolina Department of Human ResourcesSupreme Court of North Carolina · 1979
- Piedmont Canteen Service, Inc. v. JohnsonSupreme Court of North Carolina · 1962
- Colonial Pipeline Company v. ClaytonSupreme Court of North Carolina · 1969
- Stout v. CommissionerUnited States Tax Court · 1959
- Armentrout v. CommissionerUnited States Tax Court · 1964
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3Cited by17 opinions
- Wise v. CommissionerUnited States Tax Court · 1982
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