Maher v. Commissioner
United States Tax Court
1. Taxpayer by agreement paid part cash and executed two promissory notes for all of the stock of corporations A, B, C, and D, which stock was then placed in escrow to secure payment of the notes and performance of the agreement. Thereafter and during escrow, taxpayer assigned to A all of his "right, title and interest" in the stock of B in return for A's assumption of liability on his notes; however, taxpayer was not released from such liability.
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1. Taxpayer by agreement paid part cash and executed two promissory notes for all of the stock of corporations A, B, C, and D, which stock was then placed in escrow to secure payment of the notes and performance of the agreement. Thereafter and during escrow, taxpayer assigned to A all of his "right, title and interest" in the stock of B in return for A's assumption of liability on his notes; however, taxpayer was not released from such liability. Thereafter A made payments of principal and of interest on the notes in 1965, 1966, and 1967, such payments fully discharging the notes in 1967. A…
1Opinion of the Court
FokresteR, Judge:
Eespondent has determined deficiencies in petitioners’ Federal income tax as follows:
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Concessions having been made, the remaining issues for our decision are as follows:(1) Whether ‘Selectivend Corp.’s assumption of payments on Eay A. Maher’s personal promissory notes in 1963 constituted income to him in that year to the extent of the earnings and profits o'f Selec-tivend either because said assumption was a distribution of property taxable as a constructive dividend under section 3011 or because it was “other property” received in redemption of stock of…
2Cases cited19 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Crane v. CommissionerSupreme Court of the United States · 1947
- Wall v. United StatesCourt of Appeals for the Fourth Circuit · 1947
- United States v. DavisSupreme Court of the United States · 1970
- United States v. HendlerSupreme Court of the United States · 1938
14 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Yelencsics v. CommissionerUnited States Tax Court · 1980
- Benjamin v. CommissionerUnited States Tax Court · 1976
- Smith v. CommissionerUnited States Tax Court · 1978
- Miele v. CommissionerUnited States Tax Court · 1971
- Adams v. CommissionerUnited States Tax Court · 1978
35 more not listed; retrieve them via the Exa API.