May Dep't Stores Co. v. Commissioner
United States Tax Court
Petitioner, as part of one transaction, irrevocably conveyed real estate for cash and a mortgage and bond to secure payment of the deferred purchase price, and took back a lease on the property for a term of 20 years without renewal privileges. Held, under the circumstances, that there was a bona fide sale of the property within the meaning of the statute, section 23 (f) of the Internal Revenue Code.
1Opinion of the Court
OPINION.
Disnet, Judge:
The parties are in agreement that if the transaction resulted in a sale for tax purposes within the meaning of the statute, the ordinary loss sustained was in the amount of $2,041,617.90, instead of the amount deducted by petitioner in its return and disallowed by respondent in his determination of the deficiencies.
Section 23 (f) of the Internal Revenue Code allows as deductions from gross income “* * * losses sustained during the taxable year * *
The basic difference between the parties is whether the transaction completed on December 30. 1943, was a sale within the…
2Cases cited3 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
- Bank of America Nat'l Trust & Sav. Asso. v. CommissionerUnited States Tax Court · 1950
3Cited by16 opinions
- Jordan Marsh Company v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1959
- Missouri Pacific Railroad v. United StatesUnited States Court of Claims · 1974
- SMALLEY v. COMMISSIONER OF INTERNAL REVENUEUnited States Tax Court · 2001
- I. J. And Ilene J. Wagner v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1975
- City Investing Co. v. CommissionerUnited States Tax Court · 1962
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