Cameron Machine Co. v. Commissioner
United States Tax Court
Held, that anticipatory expenditures in the total amount of $ 23,299.03 for replacement facilities paid out of petitioner's general funds, and prior to payment of award, do not qualify for nonrecognition of gain under section 112(f), 1939 Code.
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Held, that anticipatory expenditures in the total amount of $ 23,299.03 for replacement facilities paid out of petitioner's general funds, and prior to payment of award, do not qualify for nonrecognition of gain under section 112(f), 1939 Code. Held, further, (a) that amounts totaling $ 108,173.33 paid out for replacement facilities were traced to funds borrowed for that purpose; that the borrowed funds so applied were repaid out of the subsequent award; and that the amounts in question qualify for nonrecognition of gain under section 112 (f); and (b) that amounts totaling $ 27,698.63 paid…
1Opinion of the Court
OPINION.
Fisher, Judge:
All of the facts are stipulated and are incorporated herein by reference.
Petitioner owned a plant in Brooklyn, New York, in which it manufactured winding machines and slitting machines used by the paper, plastic, textile, and rubber industries. It also manufactured parts for such machines. Petitioner’s business was active and substantial. Its backlog of unfilled orders was $2,410,400 at the end of the year 1945, $3,784,300 at the end of the year 1946, and $4,071,100 at the end of the year 1947.
On August 24,1945, the Board of Estimate of the City of New York authorized…
2Cases cited5 opinions
- Winter Realty & Const. Co. v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1945
- Bandes v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1934
- Twinboro Corp. v. CommissionerCourt of Appeals for the Second Circuit · 1945
- Wilmore SS Co. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1935
- Strauss v. CommissionerUnited States Tax Court · 1954
3Cited by1 opinion
- Cameron Machine Co. v. CommissionerUnited States Tax Court · 1955