Timken v. Commissioner
United States Tax Court
1. The petitioner and her husband received corporate assets, transferred in liquidation, agreeing to pay proportionately the corporate obligations. Later a deficiency in income taxes was assessed against the corporation and pro tanto paid by her, with interest. Held, petitioner is entitled to deduct the interest paid, as from the time of transfer to her. Koppers Co., 3 T. C. 62; affd., 151 Fed.
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1. The petitioner and her husband received corporate assets, transferred in liquidation, agreeing to pay proportionately the corporate obligations. Later a deficiency in income taxes was assessed against the corporation and pro tanto paid by her, with interest. Held, petitioner is entitled to deduct the interest paid, as from the time of transfer to her. Koppers Co., 3 T. C. 62; affd., 151 Fed. (2d) 267. 2. "Creditors notes" were issued by a corporation in final settlement and discharge of a balance unpaid on bank deposits in a failed bank. In the taxable year petitioner received partial…
1Opinion of the Court
OPINION.
Disney, Judge:
This case involves income taxes for the calendar years 1940 and 1941, for which years, respectively, the Commissioner determined deficiencies of $1,102.88 and $5,102.86. Two questions are presented: (1) Whether, for 1940, the petitioner, transferee of certain corporate assets in liquidation, under agreement by her to pay any corporate debts, is entitled to deduct interest paid by her on a deficiency later assessed against the corporation, as to the period after transfer of corporate assets to her; and, (2) whether certain of the petitioner’s income, in 1941, was ordinary…
2Cases cited5 opinions
- McClain v. CommissionerSupreme Court of the United States · 1941
- Koppers Co. v. CommissionerUnited States Tax Court · 1944
- Caulkins v. CommissionerUnited States Tax Court · 1943
- GREEN v. COMMISSIONERUnited States Tax Court · 1944
- Smith v. CommissionerUnited States Tax Court · 1946
3Cited by12 opinions
- Baker Commodities, Inc. v. CommissionerUnited States Tax Court · 1967
- Humacid Co. v. CommissionerUnited States Tax Court · 1964
- Oestreicher v. CommissionerUnited States Tax Court · 1953
- Avery v. CommissionerUnited States Tax Court · 1949
- Jamison v. United StatesDistrict Court, N.D. California · 1968
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