Flint, Goering & Co. v. Commissioner

Board of Tax Appeals

Flint, Goering & Co. v. Commissioner

19 B.T.A. 421, 1930 BTA LEXIS 2404

CourtUnited States Board of Tax Appeals

DecidedMarch 26, 1930

DocketDocket No. 20078.

StatusPublished

Cited by1 cases

This text of 19 B.T.A. 421 (Flint, Goering & Co. 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

Flint, Goering & Co. v. Commissioner, 19 B.T.A. 421, 1930 BTA LEXIS 2404 (bta 1930).

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Opinion

[423]*423OPINION.

Smith:

The issue before us is whether the amount of $37,557.99 constituted income to the petitioner for the year 1922.

From the record in this proceeding we are convinced that when the partnership decided to discontinue business in 1919 and to distribute its assets, it thought best to make some provision to take care of unknown or prospective liabilities. Consequently, the partnership assets were distributed to its members with the understanding that the income derived by them from such assets should be deposited with the. partnership to take care of any such liabilities. This view of the matter, in our opinion, characterizes the amounts deposited in the bank to the credit of the petitioner not as income •of the petitioner, but as property of the depositors, liable to be used by the petitioner only in the event that it should be needed to meet liabilities. The petitioner had no taxable income in 1922.

Judgment will be entered for the petitioner.

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[423]*423OPINION.

Smith:

The issue before us is whether the amount of $37,557.99 constituted income to the petitioner for the year 1922.

From the record in this proceeding we are convinced that when the partnership decided to discontinue business in 1919 and to distribute its assets, it thought best to make some provision to take care of unknown or prospective liabilities. Consequently, the partnership assets were distributed to its members with the understanding that the income derived by them from such assets should be deposited with the. partnership to take care of any such liabilities. This view of the matter, in our opinion, characterizes the amounts deposited in the bank to the credit of the petitioner not as income •of the petitioner, but as property of the depositors, liable to be used by the petitioner only in the event that it should be needed to meet liabilities. The petitioner had no taxable income in 1922.

Judgment will be entered for the petitioner.

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19 B.T.A. 421, 1930 BTA LEXIS 2404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flint-goering-co-v-commissioner-bta-1930.

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