Summit Sheet Metal Co. - Page 33

                                       - 33 -                                         

          cases; the cases discussed above are those that most closely                
          resemble the instant case.                                                  
          D.   Conclusion                                                             
               We hold that petitioner must have respondent's consent under           
          section 446(e) to change the year it reports payment of the                 
          bonuses.  Petitioner does not have respondent's consent.  Thus,             
          petitioner may deduct its officers' bonuses only in the year in             
          issue as it reported on its return.                                         
               For the foregoing reasons, we conclude that petitioner is              
          liable for the tax under section 1374(a) on the $929,915 net                
          capital gain because the net capital gain is more than 50 percent           
          of petitioner's taxable income.                                             
               To reflect the foregoing and concessions,                              
                                                       Decision will be               
                                                 entered under Rule 155.              




















Page:  Previous  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  

Last modified: May 25, 2011