Wynne v. Commissioner
United States Board of Tax Appeals
1. Unpaid balance of installment obligation due petitioners by a corporation of which they were major stockholders held not rendered subject to tax by Revenue Act of 1938, section 44, upon the distribution in liquidation of the corporation's assets to, and the assumption of its liabilities by, a partnership of which petitioners were members. 2. Excess of contested tax liabilities of the corporation over a much smaller amount subsequently paid to satisfy them held not…
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1. Unpaid balance of installment obligation due petitioners by a corporation of which they were major stockholders held not rendered subject to tax by Revenue Act of 1938, section 44, upon the distribution in liquidation of the corporation's assets to, and the assumption of its liabilities by, a partnership of which petitioners were members. 2. Excess of contested tax liabilities of the corporation over a much smaller amount subsequently paid to satisfy them held not deductible by petitioners in computing their gain on liquidation of the corporation.
1Opinion of the Court
*734OPINION.
Opper :
Although that fact does not appear, it seems to be assumed by the parties that the installment note in controversy had been received in payment for property which cost petitioners nothing, so that capital gain was realized in the year when that transaction occurred, which only the installment sale provisions of section 44 prevented from being taxable in its entirety at that time. The dispute is whether an acceleration of the tax due on the unpaid installments was brought about in the instant year by the dissolution of the debtor corporation and assumption of the debt by a…
2Cases cited1 opinion
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
3Cited by14 opinions
- Butler v. CommissionerUnited States Tax Court · 1961
- Hambuechen v. CommissionerUnited States Tax Court · 1964
- Principal Life Insurance v. United StatesUnited States Court of Federal Claims · 2006
- Burrell Groves, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1955
- Wilkinson v. CommissionerUnited States Tax Court · 1967
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