Michelin Corp. v. McMahon

WEINFELD, District Judge.

The plaintiff seeks to recover federal income tax and interest assessed against and paid by it for the year 1946 under the following circumstances:

In September, 1945 the plaintiff agreed to sell certain of its real property with improvements thereon for $700,000, or “$650,000 if the full amount of the purchase price is paid within two years”. Title was closed in December, 1945. The purchaser paid $350,000 cash and executed a bond in the sum of $350,000 secured by a mortgage on the premises, payable in ten annual installments of $25,000 each until 1955. Interest was…