T.F.H. Publications, Inc. v. Commissioner
United States Tax Court
In 1971 petitioner, an accrual basis taxpayer, acquired the printing and publishing assets of Miracle Pet Products, Inc., under a written agreement and amendment thereto. The purchase price was to be paid by cash, assumption of certain liabilities, cancellation of certain liabilities from Miracle to the Axelrods, who owned about 36 percent of the stock of Miracle and all the stock of petitioner, and by a credit to Miracle for future advertising in petitioner's publications.
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In 1971 petitioner, an accrual basis taxpayer, acquired the printing and publishing assets of Miracle Pet Products, Inc., under a written agreement and amendment thereto. The purchase price was to be paid by cash, assumption of certain liabilities, cancellation of certain liabilities from Miracle to the Axelrods, who owned about 36 percent of the stock of Miracle and all the stock of petitioner, and by a credit to Miracle for future advertising in petitioner's publications. The agreement permitted adjustment of certain items as they were subsequently agreed upon. No specific mention was made…
1Opinion of the Court
Drennen, Judge:
Respondent determined a deficiency in petitioner’s income tax as follows:
FYE Sept. SO.— Deficiency
1971 . . $165,304
Because of concessions by petitioner, the issues remaining for our decision are:(1) Whether evidence is admissible to attempt to explain or vary the terms of a written contract of sale of business assets;(2) Whether a credit for future advertising given by the buyer to the seller as part of the purchase price of a printing and publishing business is taxable income to the buyer; and(3) If so, when the income was taxable to the buyer.
FINDINGS OF FACT
Some of the facts…
2Cases cited23 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- American Automobile Assn. v. United StatesSupreme Court of the United States · 1961
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
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3Cited by9 opinions
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- Brauer v. CommissionerUnited States Tax Court · 1980
- Cvancara v. Comm'rUnited States Tax Court · 2013
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