Case Name: Appeal of JOHN DAIS CO., INC.
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1925-11-04
Citations: 2 B.T.A. 1167
Docket Number: Docket No. 1913
Parties: Appeal of JOHN DAIS CO., INC.
Judges: Before Maequette and MoRRis.
Reporter: Reports of the United States Board of Tax Appeals
Volume: 2
Pages: 1167–1168

Head Matter:
Appeal of JOHN DAIS CO., INC.
Docket No. 1913.
Submitted August 20, 1925.
Decided November 4, 1925.
Ferdinand Tanneiibawn, Esq., for the taxpayer.
E. O. Lake, Esq., for the Commissioner.
Before Maequette and MoRRis.

Opinion:
OPINION.
Marquette:
Regardless of the credit period granted purchasers from the taxpayer, remittances to consignors were made immediately upon the disposal of a consignment. That this required the use in the taxpayer's business of a large amount of cash capital is evident from the fact that credit extended during 1918 totaled approximately $125,000. It also appears that this credit business represented a very substantial portion of the taxpayer's entire sales. The Board is of opinion that this use of capital was a material income-producing factor in the taxpayer's business and therefore that the Commissioner's denial of personal-service classification is proper.