Rethorst v. Commissioner

Decided January 30, 1925

United States Board of Tax Appeals · decided 1925-01-30

Section 213(b)(8) of the Revenue Act of 1918, which provides for a $3,500 exemption for those in the military and naval forces, is repealed by section 1400(a) of the Revenue Act of 1921, as of January 1, 1921, and a soldier is not entitled to exemption for salary received between January 1, 1921, and March 3, 1921, the date on which the World War was declared at an end by Act of Congress.

Cited by 4 later decisions — most recently February 1926

Good law ✅— No negative treatment on recordhow we know

Decided 1925-01-30

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¶1OPINION.

Ivins :

¶2The war was declared terminated by resolution of Congress for certain purposes, including computation of taxes, on March 3, 1921, and the taxpayer thought that since 61 days of 1921 were thus regarded as prior to the termination of the war, he should be entitled to 61/365 of the $3,500 allowance made in the Revenue Act of 1918. But taxes for the year 1921 must be computed under the Revenue Act of 1921 which, for the purpose of computing income, etc., is retroactive to January 1, 1921. Section 1400 (a) of the 192Í act specifically repealed Title II of the 1918 act as of January 1. 1921. The exemption relied on having been thus repealed, and there being nothing in the Revenue Act of 1921 to justify any such deduction, the Commissioner was correct in disallowing the taxpayer’s claim, and his determination should be approved.