§90 — Illegal Federal irrigation subsidies
19 cases·1 overruled·18 cited
Statute Text — 26 U.S.C. §90
Gross income shall include an amount equal to any illegal Federal irrigation subsidy received by the taxpayer during the taxable year.
For purposes of this section—
The term “illegal Federal irrigation subsidy” means the excess (if any) of—
the amount required to be paid for any Federal irrigation water delivered to the taxpayer during the taxpayer year, over
the amount paid for such water.
The term “Federal irrigation water” means any water made available for agricultural purposes from the operation of any reclamation or irrigation project referred to in paragraph (8) of section 202 of the Reclamation Reform Act of 1982.
No deduction shall be allowed under this subtitle by reason of any inclusion in gross income under subsection (a).
19 Citing Cases
Section 4(c) of the APA94 potentially conflicted with section 3791(b) of the Internal Revenue Code of 1939 (and with analogous provisions in the Internal Revenue Codes of 1954 and 1986).95 Section 90 Codified as amended at 5 U.S.C.
206 (1988). Long has the rule been recognized by the courts that taxpayers are bound by the form oftheir transaction and may not argue that the substance triggers different tax consequences. Id. at 423; see also Commissioner v. Nat'l Alfalfa Dehydrating & Milling Co., 417 U.S. 134, 149 (1974) ("This Court has observed repeatedly that, whi
206 (1988). An economic outlay is an actual contribution ofcash or property by the shareholderto the S corporation. Estate ofLeavitt v. Commissioner, 875 F.2d at 422. 2. Sligo LLC Basis Computation To take advantage ofthe Epsolon losses, Mr. Tucker had to sufficiently inflate his basis in his Sligo stock. To this end, he purported to esta
206 (1988). Long has the rule been recognized by the courts that taxpayers are bound by the form oftheir transaction and may not argue that the substance triggers different tax consequences. Id. at 423; see also Commissioner v. Nat'l Alfalfa Dehydrating & Milling Co., 417 U.S. 134, 149 (1974) ("This Court has observed repeatedly that, whi
1263 (1988); Merck & Co. v. Smith, 261 F.2d 162, 164 (3d Cir. 1958). We consider the practical effect ofthe terms to which the parties have agreed, but we will not reform the parties' agreement to alter its terms absent un- usual circumstances. See Commissioner v. Danielson, 378 F.2d 771, 775 (3d Cir. 1967) ("[A] party can challenge the t
hor attempts to use early enactments ofthe income tax to shed light on the meaning ofthe income tax as it exists, but he fails miserably. Section 86 of the Revenue Act of 1862, ch. 119, 12 Stat. at 472, imposed a 3% tax on Federal employees whereas section 90, 12 Stat. at 473, ofthe same act imposed a 3% tax on "every person residing in the United States". The author makes an unfounded leap to conclude that by "identification in section 86 ofthe remuneration (pay) of government workers as taxabl
redit: - ioSec. 904(a)[generally limits tlie allowable foreign tax.creditto the amount ofU.S tafon foréié,n income. Because we reject petitioner's claim to the foreign tax credit on other årounds, we need ot and do not address the application ofthe sec. 90 (a) lirnitation to petitioner's circumstances. - 14 - A cash basis taxpayer generallymust take the foreign tax credit for the year in which the foreign taxes were paid, unless the taxpdyermakes an irrevocable election to instead take foreign t