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(accrual method taxpayer may not deduct a contingent liability);
Security Flour Mills Co. v. Commissioner, 321 U.S. 281, 287
(1944) (amount must be definite); Lucas v. North Texas Lumber
Co., 281 U.S. 11, 13 (1930) (liability must be unconditional);
Levert v. Commissioner, T.C. Memo. 1989-333 (taxpayer's
contractual liability was contingent because it depended on
completion of the promised services); sec. 1.461-1(a)(2), Income
Tax Regs.
Economic performance occurred on January 10, 1991, when
petitioner's goods were delivered to Wyoming. Furthermore,
petitioner's liability to pay the moving expenses was contingent
under both parts of the "all events test" until January 10, 1991.
The obligation to pay the carrier for shipment was contingent on
delivery of petitioner's goods to Cheyenne, Wyoming. Had
delivery not occurred, petitioner would not have been obligated
to pay the carrier. Delivery occurred on January 10, 1991.
Moreover, the amount of the liability was not reasonably certain
or definite until the Consignee Memos were presented to him for
payment on January 10, 1991. The anticipated freight cost,
according to the bill of lading, was $3,349.98. The actual cost
shown on the Consignee Memos was $1,253.37, which includes a 50
percent discount not reflected on the bill of lading. Hence the
amount of petitioner's liability to the carrier was not
reasonably certain until the Consignee Memos were presented to
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