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distribution to petitioner's member stores at petitioner's food
shows is includable in petitioner's income. We hold it is. (3)
Whether petitioner is entitled to a deduction under section 162
for certain amounts received from Western Family Foods (Western)
and distributed to its member stores at its 1989 and 1990 food
shows. We hold it is.1
All subchapter and section references are to the Internal
Revenue Code in effect for the taxable years in issue, and all
Rule references are to the Tax Court Rules of Practice and
Procedure, unless otherwise indicated. All dollar amounts are
rounded to the nearest dollar.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulated
facts and the accompanying exhibits are incorporated into our
findings by this reference. At the time the petition in this
case was filed, petitioner's principal place of business was
located in Amarillo, Texas. Petitioner keeps its books and
records on the accrual method of accounting, and it files its
Federal income tax return using a fiscal year ending September
30.
Petitioner is a wholesale food purchasing cooperative that
supplies food and other consumer products to retail grocery
1 Respondent also determined that petitioner was entitled to
an increased environmental tax deduction for 1990. This is a
mathematical adjustment.
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