Braunwarth v. Commissioner
United States Board of Tax Appeals
1. Where, upon the sale of a business, title passed to the vendee and part of the purchase price was paid in cash and the remainder in Liberty bonds which were placed in escrow to be delivered to vendor in installments over a period of years upon the filing by him each year of an affidavit that he had not competed in business, held, although the transaction was closed in the year of sale, the right to the deferred payments was not the equivalent of cash and the installment…
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1. Where, upon the sale of a business, title passed to the vendee and part of the purchase price was paid in cash and the remainder in Liberty bonds which were placed in escrow to be delivered to vendor in installments over a period of years upon the filing by him each year of an affidavit that he had not competed in business, held, although the transaction was closed in the year of sale, the right to the deferred payments was not the equivalent of cash and the installment payments were not income to the petitioner, the vendor, until received. 2. Held, further, that where petitioner failed to…
1Opinion of the Court
*1020OPINION.
McMahon :
The petitioner alleged in his petition that the Commissioner erred in including in gross income for the year 1924 any part of the Liberty bonds and accumulated interest amounting to $88,218.25 received by the petitioner during that taxable year in trust for Hooven Realties, Inc. However, there was no evidence whatsoever on this point and in his brief petitioner stated that this contention had been abandoned. We shall therefore disregard this assignment of error.
The first question to be decided is whether any part of the profit from the sale of petitioner’s business under the…
2Cited by3 opinions
- Murray v. CommissionerUnited States Board of Tax Appeals · 1933
- Braunwarth v. CommissionerUnited States Board of Tax Appeals · 1931
- Walker v. CommissionerUnited States Board of Tax Appeals · 1931