Hatch v. Commissioner
United States Tax Court
Gain or Loss -- Capital Asset -- Sale by Partners. -- Where individuals acting as partners sell to another most of the assets of a partnership subject to some of its liabilities, without a distribution of the assets to the partners prior to the sale, and the partnership survives the sale, the transaction is a sale by the partnership of some of its assets and not a sale by the partners individually of their interests in the partnership, for the purpose of determining to what…
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Gain or Loss -- Capital Asset -- Sale by Partners. -- Where individuals acting as partners sell to another most of the assets of a partnership subject to some of its liabilities, without a distribution of the assets to the partners prior to the sale, and the partnership survives the sale, the transaction is a sale by the partnership of some of its assets and not a sale by the partners individually of their interests in the partnership, for the purpose of determining to what extent the gain realized upon the sale is taxable to the partners as capital gain.
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined deficiencies in income tax as follows:
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The sole issue is whether the Commissioner erred in determining that a part of the gain realized by Herbert B. Hatch, Jnanita O. Hatch, and Herbert B. Hatch, Jr., upon a sale involving their partnership business and assets in 1944 is taxable to them as ordinary income.
The facts are stipulated.
Herbert B. Hatch, Juanita O. Hatch, his wife, and Herbert B. Hatch, Jr., their son, were individuals engaged in the automobile business in Stockton, California, prior to 1944. Their individual returns…
2Cases cited1 opinion
- Smith v. CommissionerUnited States Tax Court · 1948
3Cited by16 opinions
- Cedar Valley Distillery, Inc. v. CommissionerUnited States Tax Court · 1951
- Paul W. Trousdale v. Commissioner of Internal Revenue, Marguerite R. Trousdale v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- Barran v. CommissionerUnited States Tax Court · 1962
- Hatch's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1952
- González Díaz v. DescartesSupreme Court of Puerto Rico · 1954
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