Townsend v. Commissioner
United States Tax Court
Payments made in subsequent years under a contract of sale of corporate stock calling for a total specified maximum payment but not to exceed a stipulated percentage of the corporation's income for the following 5 years, held to be proceeds of the sale and thus taxable to the sellers notwithstanding that the unfulfilled portion of the sales contract had in the meantime been made the subject of a gift.
1Opinion of the Court
OPINION.
Oppek, Judge:
It is difficult to subscribe to petitioner’s theory that the gains in controversy were income generated by income-producing property. The parties are evidently in agreement that the income is capital gain and it seems to us inescapable that this must have arisen out of the sale made by petitioners before they transferred its proceeds. Ordinarily, the gain would then have been taxable to them, cf. John W. Chamberlin, 32 T.C. 1098 (1959), affd. 286 F. 2d 850 (C.A. 7, 1961), certiorari denied 368 U.S. 820 (1961), but if for some reason, as is agreed by the parties here, the…
2Cases cited18 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Helvering v. HorstSupreme Court of the United States · 1940
- Blair v. CommissionerSupreme Court of the United States · 1937
- Burnet v. LoganSupreme Court of the United States · 1931
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3Cited by4 opinions
- Estate of Applestein v. CommissionerUnited States Tax Court · 1983
- Estate of Applestein v. CommissionerUnited States Tax Court · 1983
- Realty Settlement Corp. v. CommissionerUnited States Tax Court · 1980
- Townsend v. CommissionerUnited States Tax Court · 1962