Estate of Williamson v. Commissioner
United States Tax Court
1. An amount credited to petitioner's partnership capital account, held, to be additional taxable income in absence of contrary proof. 2. Cash basis seller required by purchaser to leave proceeds of corporate stock sale for disbursement to the corporation as a loan on open account, held, not to have realized income in year of sale in the absence of collection of debt from corporation. 3. Advances by petitioner to a corporation which subsequently became insolvent, held, not…
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1. An amount credited to petitioner's partnership capital account, held, to be additional taxable income in absence of contrary proof. 2. Cash basis seller required by purchaser to leave proceeds of corporate stock sale for disbursement to the corporation as a loan on open account, held, not to have realized income in year of sale in the absence of collection of debt from corporation. 3. Advances by petitioner to a corporation which subsequently became insolvent, held, not deductible either as a loss or as a business bad debt.
1Opinion of the Court
OPINION.
Opper, Judge:
In 1948 an item of $1,000 was credited to decedent’s capital account with his law firm, but was unreported as taxable income. Respondent treated this as additional ordinary income but petitioners contend that it was a trust fund and should have been dealt with accordingly. The difficulty is that there is no specific evidence to that effect and certainly none that there was a trust fund of which the $1,000 in question or any fraction of it was a part, or which was so earmarked. Since we are unable to find the facts in this connection in petitioners’ favor, the deficiency…
2Cases cited15 opinions
- Campbell v. CommissionerUnited States Tax Court · 1948
- Boissevain v. CommissionerUnited States Tax Court · 1951
- Towers v. CommissionerUnited States Tax Court · 1955
- Commissioner of Internal Revenue v. SmithCourt of Appeals for the Second Circuit · 1953
- Smith v. CommissionerUnited States Tax Court · 1951
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3Cited by1 opinion
- Estate of Williamson v. CommissionerUnited States Tax Court · 1957