West Production Co. v. Commissioner
United States Board of Tax Appeals
1. In the taxable year petitioner purchased certain collaterally secured notes at a substantial discount. It sold a portion of the collateral with the consent of the maker of the notes and thereafter acquired the remaining collateral at a foreclosure sale.
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1. In the taxable year petitioner purchased certain collaterally secured notes at a substantial discount. It sold a portion of the collateral with the consent of the maker of the notes and thereafter acquired the remaining collateral at a foreclosure sale. Held, that petitioner's profit should be determined by considering the entire transaction, and not by the situation that existed at the end of each intermediate step. 2. Petitioner assigned an undivided interest in a block of leases for a cash payment, additional payments to be made out of a portion of the oil to be produced, overriding…
1Opinion of the Court
*1049_T T OPINION.
ARNOLD:
The first issue involves the gain, if any, realized by petitioner on the Sterling note transaction. Respondent determined that petitioner first realized income upon the sale of the Moss Bluff property, and thereafter upon the purchase at foreclosure of the remaining collateral. Petitioner has advanced several theories with respect to the transaction, none of which are decisive of the question presented.
There is no dispute between the parties as to the amounts involved or the values used by each party in arriving at the various gains computed from the Sterling transaction.…
2Cases cited6 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Thomas v. PerkinsSupreme Court of the United States · 1937
- Helvering v. Bankline Oil Co.Supreme Court of the United States · 1938
- Helvering v. Midland Mutual Life InsuranceSupreme Court of the United States · 1937
- Helvering v. Elbe Oil Land Development Co.Supreme Court of the United States · 1938
1 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Cullen v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1941
- Commissioner v. West Production Co.Court of Appeals for the Fifth Circuit · 1941
- Community Bank v. CommissionerUnited States Tax Court · 1974
- Aaron W. Hardwick v. CommissionerUnited States Tax Court · 1947
- Community Bank v. CommissionerUnited States Tax Court · 1974
3 more not listed; retrieve them via the Exa API.