Desks, Inc. v. Commissioner
United States Tax Court
In order to induce Standard to furnish merchandise on credit, petitioner had to agree on July 1, 1936, to pay premiums and interest on a $ 60,000 life insurance policy assigned to Standard by Hale.
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In order to induce Standard to furnish merchandise on credit, petitioner had to agree on July 1, 1936, to pay premiums and interest on a $ 60,000 life insurance policy assigned to Standard by Hale. Hale, a bankrupt corporation run by many of the same officers and employees now with petitioner, had been indebted to Standard for $ 60,102.14. Subsequently, Hale paid about 20 per cent of its debts to its creditors, including Standard, and Standard contracted to remit to petitioner insurance proceeds in excess of $ 48,081.47, the unpaid indebtedness of Hale without interest. Accordingly, shortly…
1Opinion of the Court
Desks, Inc., Petitioner, v. Commissioner of Internal Revenue, Respondent
Desks, Inc. v. Commissioner
Docket No. 31660
United States Tax Court
18 T.C. 674; 1952 U.S. Tax Ct. LEXIS 151;
June 27, 1952, Promulgated
Decision will be entered under Rule 50.
In order to induce Standard to furnish merchandise on credit, petitioner had to agree on July 1, 1936, to pay premiums and interest on a $ 60,000 life insurance policy assigned to Standard by Hale. Hale, a bankrupt corporation run by many of the same officers and employees now with petitioner, had been indebted to Standard for $ 60,102.14. Subsequently,…
2Cases cited4 opinions
- Rieck v. HeinerCourt of Appeals for the Third Circuit · 1928
- Klein v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1936
- St. Louis Refrigerating & Cold Storage Co. v. United StatesCourt of Appeals for the Eighth Circuit · 1947
- Desks, Inc. v. CommissionerUnited States Tax Court · 1952