Case Name: W. J. Byrnes & Co., Petitioner, v. Commissioner of Internal Revenue, Respondent
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1926-10-26
Citations: 5 B.T.A. 175
Docket Number: Docket No. 4000
Parties: W. J. Byrnes & Co., Petitioner, v. Commissioner of Internal Revenue, Respondent.
Judges: 
Reporter: Reports of the United States Board of Tax Appeals
Volume: 5
Pages: 175–178

Head Matter:
W. J. Byrnes & Co., Petitioner, v. Commissioner of Internal Revenue, Respondent.
Docket No. 4000.
Decided October 26, 1926.
H. H. Tooley, C. P. A., for the petitioner.
George E. Adams, Esg., for the respondent.

Opinion:
OPINION.
Lansdon :
The petitioner advanced considerable sums for the payment of freight on shipments of goods belonging to its customers. Such advances were generally collected in a short time, but required the use of substantial amounts of capital. Its balance sheets show that at December 31, 1918, it had accounts receivable in the amount of $63,057.39 and accounts payable in the amount of $51,049.48. During the year it operated a warehouse for hire and derived income therefrom in the amount of $4,415.83. These facts indicate the use of capital which, though borrowed, was a material income-producing factor.
Judgment will be entered for the Commissioner.