Commercial Sec. Bank v. Commissioner
United States Tax Court
Pursuant to a plan of complete liquidation under sec. 337, I.R.C. 1954, O sold all of its assets, including receivables, to petitioner in exchange for cash and assumption of O's accrued liabilities. O was a cash basis taxpayer, and the transferred accrued liabilities were of a character which would have been deductible by O when paid. Held, O must include in its gross income the amount of the transferred "accrued interest receivables."
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Pursuant to a plan of complete liquidation under sec. 337, I.R.C. 1954, O sold all of its assets, including receivables, to petitioner in exchange for cash and assumption of O's accrued liabilities. O was a cash basis taxpayer, and the transferred accrued liabilities were of a character which would have been deductible by O when paid. Held, O must include in its gross income the amount of the transferred "accrued interest receivables." Held, further, the diminution in sales price paid to O on account of the transferred "accrued business liabilities" is equivalent to a payment by O, and…
1Opinion of the Court
Commercial Security Bank, Petitioner v. Commissioner of Internal Revenue, Respondent
Commercial Sec. Bank v. Commissioner
Docket No. 5652-79
United States Tax Court
77 T.C. 145; 1981 U.S. Tax Ct. LEXIS 93;
July 29, 1981, Filed
Decision will be entered under Rule 155.
Pursuant to a plan of complete liquidation under sec. 337, I.R.C. 1954, O sold all of its assets, including receivables, to petitioner in exchange for cash and assumption of O's accrued liabilities. O was a cash basis taxpayer, and the transferred accrued liabilities were of a character which would have been deductible by O when paid.…
2Cases cited23 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Commissioner of Internal Revenue v. CarterCourt of Appeals for the Second Circuit · 1948
- Jud Plumbing & Heating, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
- Standard Paving Co. v. Commissioner of Internal Revenue. Standard Paving Co. v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1951
- Carter v. CommissionerUnited States Tax Court · 1947
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