Guaranty Trust Co of New York v. Commissioner of Internal Revenue’s Empirical Analysis

Citation profile

101 federal appellate · 6 district · 5 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 186 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““The deductions and credits * * * provided for in this title shall be taken for the taxable year in which ‘paid or accrued’ or ‘paid or incurred’, dependent upon the method of accounting upon the basis of which the net income is computed, unless in order to clearly reflect the income the deductions or credits should be taken as of a different period. * * * ” 52 Stat. 473 . Treas.Reg. 101 in effect for 1938 provides, in part: “Art. 42-4. Long Term Contracts.— Income from long-term contracts is taxable for the period in which the income is determined, such determination depending upon the nature and terms of the particular contract. As used in this article the term ‘long-term contracts’ means building, installation, or construction contracts covering a period in excess of one year. Persons whose income is derived in whole or in part from such contracts may, as to such income, prepare their returns upon either of the following bases: Sic * * * * “(b) Gross income may be reported for the taxable year in which the contract is finally completed and accepted if the taxpayer elects as a consistent practice so to treat such income, provided such method clearly reflects the net income. If this method is adopted there should be deducted from gross income all expenditures during the life of the contract which are properly allocated thereto, taking into consideration any material and supplies charged to the work under the contract but remaining on hand at the time of completion.””

   2 later decisions quote this exact passage · from the majority
   e.g. Irwin v. Commissioner · A. D. Irwin v. Commissioner of Internal Revenue, A. O. Leighton and Gertrude Leighton v. Commissioner of Internal Revenue

2. “Receipt of income or accrual of the right to receive it within the tax year is the test of taxability, not the time it has taken the taxpayer to earn it nor the duration of his investments which have finally resulted in profit.”

   2 later decisions quote this exact passage · from the majority
   e.g. Estate Of Frank H. Knipp · Estate of Knipp v. Commissioner