Fitchburg Railroad v. Commissioner

Board of Tax Appeals

Fitchburg Railroad v. Commissioner

8 B.T.A. 495

CourtUnited States Board of Tax Appeals

DecidedOctober 4, 1927

DocketDocket No. 8849

StatusPublished

This text of 8 B.T.A. 495 (Fitchburg Railroad v. Commissioner) is published on Counsel Stack Legal Research, covering United States Board of Tax Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Fitchburg Railroad v. Commissioner, 8 B.T.A. 495 (bta 1927).

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Opinion

[496]*496OPINION.

Littleton:

In Appeal of Providence & Worcester Railroad Co., 5 B. T. A. 1186, the Board held that the amount of tax upon the income of the lessor and paid by the lessee, under the terms of a lease such as we have here, constituted additional taxable income to such lessor in the year in which such tax was paid by the lessee. On the authority of that decision petitioner’s tax for the fiscal period January 1 to November 30, 1919, should be recomputed by including in income the amount of $112,910.58 representing the tax upon petitioner’s income for 1918 and paid by the lessee in 1919.

The second issue is governed by the decision of the Board in Old Colony Railroad Co., 6 B. T. A. 1025. On the authority of the decision in that proceeding it is held that no portion of the premium at which bonds which were outstanding at the close of each of the taxable years involved were issued constituted income during the taxable years.

Reviewed by the Board.

Judgment will be entered on 15 days’ notice, v/rvder Rule 50.

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[496]*496OPINION.

Littleton:

In Appeal of Providence & Worcester Railroad Co., 5 B. T. A. 1186, the Board held that the amount of tax upon the income of the lessor and paid by the lessee, under the terms of a lease such as we have here, constituted additional taxable income to such lessor in the year in which such tax was paid by the lessee. On the authority of that decision petitioner’s tax for the fiscal period January 1 to November 30, 1919, should be recomputed by including in income the amount of $112,910.58 representing the tax upon petitioner’s income for 1918 and paid by the lessee in 1919.

The second issue is governed by the decision of the Board in Old Colony Railroad Co., 6 B. T. A. 1025. On the authority of the decision in that proceeding it is held that no portion of the premium at which bonds which were outstanding at the close of each of the taxable years involved were issued constituted income during the taxable years.

Reviewed by the Board.

Judgment will be entered on 15 days’ notice, v/rvder Rule 50.

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Bluebook (online)

8 B.T.A. 495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fitchburg-railroad-v-commissioner-bta-1927.