Boca Ceiga Dev. Co. v. Commissioner
United States Board of Tax Appeals
1. Upon the evidence, held, that petitioner's books of account were kept and its income-tax returns filed on the basis of actual receipts and disbursements. 2. The respondent's disallowance of amounts alleged to have been accrued as commissions upon real estate sales sustained. 3. Where petitioner received shares of its capital stock as the initial payment upon an installment sale of real estate, it realized no gain in the acquisition of this stock.
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1. Upon the evidence, held, that petitioner's books of account were kept and its income-tax returns filed on the basis of actual receipts and disbursements. 2. The respondent's disallowance of amounts alleged to have been accrued as commissions upon real estate sales sustained. 3. Where petitioner received shares of its capital stock as the initial payment upon an installment sale of real estate, it realized no gain in the acquisition of this stock. Houston Brothers Co.,21 B.T.A. 804, followed.
1Opinion of the Court
*944OPINION.
Smith:
The petitioner contends that its “books were kept substantially on the accrual basis, as evidenced by the fact that there are entries there for bills receivable, mortgages receivable, accounts payable and notes receivable.” The books were submitted in evidence, and these have been carefully examined in the light of the returns filed. While there appear to be accounts designated as “ receivable ” and “ payable,” such accounts appear merely as memorandum records of such items as mortgages and notes and there do not appear therein accrued items of income and expenses, as the case…
2Cited by1 opinion
- Boca Ceiga Dev. Co. v. CommissionerUnited States Board of Tax Appeals · 1932