- 15 - Simon, the Court of Appeals for the Second Circuit noted that one of the conclusive facts in finding the taxpayer did not maintain inventories was that the taxpayer had no stock or merchandise on hand and no warehouse or storeroom for merchandise. Simon v. Commissioner, supra at 232. Here, as discussed below, we find as fact that petitioner did indeed have stock on hand and a warehouse where it stored materials. In addition to the above-described materials petitioner acquired in its business, respondent alleges that petitioner had a warehouse where it stored materials such as large piping, duct work, plumbing materials, sheet metal, small hardware pieces, and materials left over from various job sites. Petitioner admits that its office contains a large warehouse where it keeps materials such as scraps from old jobs, doors, and some duct work. Moreover, petitioner concedes that if it does maintain the "warehouse inventory" as alleged by respondent, "then there is no question that it will have title to it." Petitioner contends however, both at trial and on brief, that the warehouse space was shared by petitioner and two corporations run by the brothers of petitioner's president. At trial, Barden, petitioner's president, testified that his brother, Howell, who owned General Mechanical Corporation (General Mechanical), had shut down his company after being in business for 20 years. Barden claimed that all of the material from General Mechanical's shop was brought to petitioner's warehouse and stored there by Howell.Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011