Silberblatt v. Commissioner
United States Board of Tax Appeals
1. In 1925 petitioner contracted to sell his interest in a corporation for a fixed price, about two thirds of which was to be paid in monthly installments, the balance in cash at the time of contract. Petitioner placed his corporate stock in escrow, with power to recall it if any of the monthly payments were defaulted. The payments were completed and the stock delivered to the purchaser in 1926. Petitioner sustained a loss on the transaction.
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1. In 1925 petitioner contracted to sell his interest in a corporation for a fixed price, about two thirds of which was to be paid in monthly installments, the balance in cash at the time of contract. Petitioner placed his corporate stock in escrow, with power to recall it if any of the monthly payments were defaulted. The payments were completed and the stock delivered to the purchaser in 1926. Petitioner sustained a loss on the transaction. Held, the sale was consummated and the loss occurred in 1926. 2. Year when loss was sustained upon money loaned determined.
1Opinion of the Court
*76OPINION.
Marquette:
There is no dispute concerning the fact of the total amount of loss sustained by the petitioner in connection with the Supreme Cloth Sponging Co. The point here in controversy is whether that loss occurred in 1925 or in 1926, either in whole or in part.
The loss consisted of two items. One item, for money loaned, amounted to $8,000. It seems clear to us from the record that petitioner sustained that loss in 1925. He knew in that year that the money loaned could never be recovered. By written contract in August 1925 petitioner agreed to cancel the debt if certain persons would…
2Cases cited3 opinions
- Swift v. CommissionerUnited States Board of Tax Appeals · 1930
- Sacks v. CommissionerUnited States Board of Tax Appeals · 1931
- Martin v. CommissionerUnited States Board of Tax Appeals · 1931
3Cited by3 opinions
- Chaplin v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1943
- Stiver v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1937
- Silberblatt v. CommissionerUnited States Board of Tax Appeals · 1933