Veit v. Commissioner
United States Tax Court
1. On June 18, 1941, it was agreed between the taxpayer and his employer that petitioner's profit participation for 1940 under a contract with his employer which was payable in 1941 was $ 87,076.40 and that it should be paid to petitioner in four equal installments in 1942. This followed a similar agreement entered into in 1940. Held, that this agreement to defer the payment of the $ 87,076.40 in question from 1941 to 1942 was entered into in a bona fide business transaction…
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1. On June 18, 1941, it was agreed between the taxpayer and his employer that petitioner's profit participation for 1940 under a contract with his employer which was payable in 1941 was $ 87,076.40 and that it should be paid to petitioner in four equal installments in 1942. This followed a similar agreement entered into in 1940. Held, that this agreement to defer the payment of the $ 87,076.40 in question from 1941 to 1942 was entered into in a bona fide business transaction at arm's length between petitioner and his employer corporation and petitioner did not constructively receive the…
1Opinion of the Court
OPINION.
Black, Judge:
1. Petitioner in his brief states the first issue to be decided as follows: “Can the doctrine of constructive receipt be used to attribute the receipt of income to a taxpayer on a cash receipts and disbursements basis in a year in which he did not have the right to receive the income and did not in fact receive the income?” It will be noted that this issue was raised by petitioner’s assignment of error (b), hereinbefore set out.
Our findings of fact show that in the year 1940 the amount which petitioner was entitled to receive as his share of 1939 profits under the…
2Cases cited3 opinions
- Poe v. SeabornSupreme Court of the United States · 1930
- Estate of ArmsCalifornia Supreme Court · 1921
- Bruggemeyer v. ZimmermanCalifornia Court of Appeal · 1931
3Cited by36 opinions
- Harbor Plywood Corp. v. CommissionerUnited States Tax Court · 1950
- Amend v. CommissionerUnited States Tax Court · 1949
- Young Door Co., Eastern Div. v. CommissionerUnited States Tax Court · 1963
- Cohen v. CommissionerUnited States Tax Court · 1974
- Schniers v. CommissionerUnited States Tax Court · 1977
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