Brown v. Commissioner
United States Tax Court
1. Petitioner corporation acquired assets from a partnership pursuant to an installment sales contract under the terms of which the consideration was to be paid in 10 equal annual installments. Title to the assets was reserved in the partners until the full purchase price was paid.
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1. Petitioner corporation acquired assets from a partnership pursuant to an installment sales contract under the terms of which the consideration was to be paid in 10 equal annual installments. Title to the assets was reserved in the partners until the full purchase price was paid. Held, the sales contract was not stock or securities within the meaning of section 112 (b) (5), I. R. C. 1939, and the gain realized by the transferors on the transaction was recognized. 2. Held, further, the basis to the transferee corporation of the assets acquired by it is the cost of the assets. Sec. 113 (a),…
1Opinion of the Court
OPINION.
Withey, Judge:
Petitioners contend that the execution of the installment contract on January 2, 1947, constituted a sales transaction, separate and distinct from the exchange of December 31, 1946, and created a valid debtor-creditor relationship between the partners and the corporation. Petitioners therefore maintain that the gain realized on the transaction should be recognized, and that the corporation is entitled to utilize the fair market value of the assets at the time of the transfer as its basis for depreciation pursuant to section 113 (a) of the 1939 Code.2
The respondent has…
2Cases cited9 opinions
- Gooding Amusement Co. v. CommissionerUnited States Tax Court · 1954
- Sun Properties, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1955
- Camp Wolters Enterprises, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1956
- Camp Wolters Enterprises, Inc. v. CommissionerUnited States Tax Court · 1954
- Estate of Miller v. CommissionerUnited States Tax Court · 1955
4 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Curry v. CommissionerUnited States Tax Court · 1965
- Gallagher v. CommissionerUnited States Tax Court · 1962
- H. B. Zachry Co. v. CommissionerUnited States Tax Court · 1967
- Coates Trust v. CommissionerUnited States Tax Court · 1970
- Foresun, Inc. v. CommissionerUnited States Tax Court · 1964
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