Rev. Rul. 60-285

The Internal Revenue Service will follow the decision of the United States Court of Claims in Woodbury Farms & Realty Corporation v. United States , 278 Fed.(2d) 333.

The court held that the corporate taxpayer, in computing its personal holding company subchapter A net income for the years 1951 and 1953, was entitled under section 505(a)(1) of the Internal Revenue Code of 1939 to deduct the entire alternative tax paid for the years 1950 and 1952 pursuant to section 117(c)(1) of the 1939 Code.

This decision is in accord with the decision in Delaware Realty & Investment Company v. Commissioner , 234 Fed. (2d) 911.

For taxable years governed by the Internal Revenue Code of 1954 the issue presented is controlled by sections 1201 and 545(b) thereof.

¹ Based on Technical Information Release 245, dated August 4, 1960.