Ashlock v. Commissioner
United States Tax Court
1. By contract of sale on April 18, 1945, petitioner purchased real property for $ 40,000 and the seller retained possession and rents until August 15, 1947. Held, since the seller retained legal ownership as well as control, benefits, and unfettered command of the rents, petitioner is not taxed on the rental income which was paid to the sellers by the tenant in 1945 and up to February 7, 1946. 2. On February 7, 1946, the parties executed a "Receipt and Release" agreement…
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1. By contract of sale on April 18, 1945, petitioner purchased real property for $ 40,000 and the seller retained possession and rents until August 15, 1947. Held, since the seller retained legal ownership as well as control, benefits, and unfettered command of the rents, petitioner is not taxed on the rental income which was paid to the sellers by the tenant in 1945 and up to February 7, 1946. 2. On February 7, 1946, the parties executed a "Receipt and Release" agreement upon the execution of which petitioner paid the sellers $ 23,527.64. It was stated in this agreement, among other things,…
1Opinion of the Court
OPINION.
Black, Judge:
This proceeding raises two issues arising out of petitioner’s purchase of property from trustees who continued to receive rental income until February 7, 1946. These two issues may be stated as follows:
1. Were the amounts of rentals paid to the sellers of the property by the lessee, Cessna Aircraft Company, during 1945 and up to February 7,1946, taxable to petitioner because they were applied in part payment of the purchase price which petitioner had agreed to pay for the property ?
2. Is petitioner entitled to have deducted from his gross income in 1946 and 1947,…
2Cases cited9 opinions
- Corliss v. BowersSupreme Court of the United States · 1930
- Thomas v. PerkinsSupreme Court of the United States · 1937
- Livingston's v. StorySupreme Court of the United States · 1837
- Clendening v. WyattSupreme Court of Kansas · 1895
- Lum v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1945
4 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Goelet v. United StatesDistrict Court, S.D. New York · 1958
- Ellison v. CommissionerUnited States Tax Court · 1983
- Ashlock v. CommissionerUnited States Tax Court · 1952
- Ellison v. CommissionerUnited States Tax Court · 1983
- Newman v. CommissionerUnited States Tax Court · 1981
1 more not listed; retrieve them via the Exa API.