Schuessler v. Commissioner

230 F.2d 722 (1956)

From our private database of 46,000+ case briefs, written and edited by humans—never with AI.

Schuessler v. Commissioner

United States Court of Appeals for the Fifth Circuit
230 F.2d 722 (1956)

SR

Facts

Schuessler (plaintiff) is an accrual method taxpayer engaged in the business of selling gas furnaces. In 1946, it sold 665 furnaces. With each furnace, Schuessler guaranteed that it would turn the furnace on and off for the purchaser for five years. This service is estimated to cost at least $2.00 per visit. As a result of this guarantee, Schuessler was able to sell its furnaces at $20–25 higher than its competitors. In order to meet this obligation, Schuessler set aside a reserve fund of $13,300 in 1946 and deducted the entire amount on its tax return for 1946. The Tax Court disallowed the deduction.

Rule of Law

Issue

Holding and Reasoning (Tuttle, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 742,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 742,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,000 briefs, keyed to 986 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 742,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,000 briefs - keyed to 986 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership