Johnston v. Commissioner
United States Tax Court
Gain or Loss -- Amount Realized -- Cash Basis -- Escrow -- Property -- Equivalent of Cash -- Sections 44 and 111 (b). -- A stockholder using the cash receipts method of reporting income joined with other stockholders during 1942 in a contract to sell all of the stock of a corporation, under which contract they delivered the stock to the sellers in 1942, the sellers deposited one-half of the estimated purchase price in a bank as escrow agent of both sellers and purchasers to…
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Gain or Loss -- Amount Realized -- Cash Basis -- Escrow -- Property -- Equivalent of Cash -- Sections 44 and 111 (b). -- A stockholder using the cash receipts method of reporting income joined with other stockholders during 1942 in a contract to sell all of the stock of a corporation, under which contract they delivered the stock to the sellers in 1942, the sellers deposited one-half of the estimated purchase price in a bank as escrow agent of both sellers and purchasers to distribute the cash early in 1943, and the balance of the purchase price, after events in 1943 fixed the amount, was to…
1Opinion of the Court
OPINION.
MuRDOCK, Judge'.
Tbe Commissioner determined a deficiency of $1,820.74 in- the petitioners’ income tax for 1943. Income of tbe year 1942 is also involved because of tbe Current Tax Payment Act of 1943. Tbe only issue for decision is whether tbe Commissioner erred in determining that tbe gain which petitioner Harold W. Johnston (hereinafter called tbe petitioner) realized on the sale of certain stock was taxable in 1943 rather than in 1942. The facts have been stipulated.
Joint income tax returns on the cash basis for the years 1942 and 1943 were filed by the petitioners with the…
2Cases cited3 opinions
- Corliss v. BowersSupreme Court of the United States · 1930
- Burnet v. LoganSupreme Court of the United States · 1931
- Farr v. CommissionerUnited States Tax Court · 1948
3Cited by60 opinions
- Keith v. CommissionerUnited States Tax Court · 2000
- Earl A. Phillips and Dorothy M. Phillips v. William E. Frank, District Director of Internal RevenueCourt of Appeals for the Ninth Circuit · 1961
- Western Oaks Bldg. Corp. v. CommissionerUnited States Tax Court · 1968
- Ennis v. CommissionerUnited States Tax Court · 1951
- Hurlburt v. CommissionerUnited States Tax Court · 1956
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