Astoria Marine Constr. Co. v. Commissioner
United States Tax Court
A corporation, financially distressed, paid a creditor $ 500 in full settlement of notes for $ 26,000. The creditor accepted the settlement only because an investigation had convinced him that he could collect no more. (1) The difference of $ 25,500, held, not excludable from gross income as a gift under section 22 (b) (3), Internal Revenue Code.
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A corporation, financially distressed, paid a creditor $ 500 in full settlement of notes for $ 26,000. The creditor accepted the settlement only because an investigation had convinced him that he could collect no more. (1) The difference of $ 25,500, held, not excludable from gross income as a gift under section 22 (b) (3), Internal Revenue Code. Commissioner v. Jacobson, 336 U.S. 28. (2) On the evidence, held, that the corporation was insolvent before and after the compromise settlement, and hence no taxable income resulted from it. Dallas Transfer & Terminal Warehouse Co. v. Commissioner,…
1Opinion of the Court
Astoria Marine Construction Co., Petitioner, v. Commissioner of Internal Revenue, Respondent
Astoria Marine Constr. Co. v. Commissioner
Docket No. 11392
United States Tax Court
12 T.C. 798; 1949 U.S. Tax Ct. LEXIS 195;
May 20, 1949, Promulgated
Decision will be entered under Rule 50.
A corporation, financially distressed, paid a creditor $ 500 in full settlement of notes for $ 26,000. The creditor accepted the settlement only because an investigation had convinced him that he could collect no more.(1) The difference of $ 25,500, held, not excludable from gross income as a gift under section 22 (b)…
2Cases cited5 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Commissioner v. JacobsonSupreme Court of the United States · 1949
- Helvering v. American Chicle Co.Supreme Court of the United States · 1934
- Astoria Marine Construction Co. v. CommissionerUnited States Tax Court · 1949
- Astoria Marine Constr. Co. v. CommissionerUnited States Tax Court · 1949