Schuessler v. Commissioner

230 F.2d 722 (5th Cir. 1956)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

P was in the gas furnace business. In 1946, he sold 665 furnaces each with a guarantee that he would turn the furnace on and off each year for five years. P amply established that such a service would cost $2 per call. P was an accrual basis taxpayer, and he took a charge of $13,300 to cover the cost of this guaranteed service. The furnaces were sold at a price that was $20-25 more than competitors because of this guarantee that competitors did not offer.