Carp v. Commissioner
United States Board of Tax Appeals
1. TAXABLE TRANSACTION - ESCROW. - Where the petitioner in 1926 sold his stock in a corporation for $50,000 cash and $50,000 in notes payable over a period of 100 weeks, and the certificates of stock were placed in escrow until all the notes were paid, the transaction was completed and is taxable in 1926. Seletha O. Thompson,9 B.T.A. 1342, and John W. Sherwood,8 B.T.A. 103, followed. 2. REDUCTION OF CONSIDERATION. - Where petitioner in 1928 made a settlement with the…
Read the full summary
1. TAXABLE TRANSACTION - ESCROW. - Where the petitioner in 1926 sold his stock in a corporation for $50,000 cash and $50,000 in notes payable over a period of 100 weeks, and the certificates of stock were placed in escrow until all the notes were paid, the transaction was completed and is taxable in 1926. Seletha O. Thompson,9 B.T.A. 1342, and John W. Sherwood,8 B.T.A. 103, followed. 2. REDUCTION OF CONSIDERATION. - Where petitioner in 1928 made a settlement with the purchasers of the stock by which he reduced the selling price of the stock by $12,814.53, the reduction does not affect the tax…
1Opinion of the Court
*545OPINION.
Adams :
It is the contention of the petitioner that the two contracts of January 8, 1926, do not state the facts or agreements correctly, and that the correct agreement was that he was selling *546only one half of bis stock, or 50 shares, and that G-oldman was selling one half of his stock, or 50 shares, to the Michigan Stock Buyers, Inc. It is further contended that the two contracts as corrected should be construed together and considered as one transaction, and if this were done Goldman was a full partner in the deal and liable for half of the tax.
We are not impressed by this claim nor…
2Cases cited2 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Murray v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by1 opinion
- Carp v. CommissionerUnited States Board of Tax Appeals · 1934