Case Name: Appeal of THE RHODE ISLAND TOOL CO.
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1925-11-28
Citations: 3 B.T.A. 180
Docket Number: Docket No. 2832
Parties: Appeal of THE RHODE ISLAND TOOL CO.
Judges: Before Steeni-iagen, Green, and Love.
Reporter: Reports of the United States Board of Tax Appeals
Volume: 3
Pages: 180–182

Head Matter:
Appeal of THE RHODE ISLAND TOOL CO.
Docket No. 2832.
Submitted May 13, 1925.
Decided November 28, 1925.
Edward McCarthy, Esq., and George M. Wolcott, Esq., for the taxpayer.
J. Harry Byrne, Esq., for the Commissioner.
Before Steeni-iagen, Green, and Love.

Opinion:
OPINION.
Sternhagen
: Since this appeal was filed the Board has decided the Appeal of L. S. Ayers & Co., 1 B. T. A., 1135, and the Appeal of Guarantee Construction Co., 2 B. T. A. 1145. From the opinions in those cases, which we need not now repeat, it is clear that the position of the taxpayer as to the proper determination of invested capital in respect of Federal income and profits taxes based on the income- for preceding years must be sustained, except in so far as concerns the dividends paid January 15 of each year, which dividends are deductible in full from invested capital of the year from the date paid. Sec. 201 (e), Revenue Act of 1918.