Shafpa Realty Corp. v. Commissioner
United States Board of Tax Appeals
1. A corporation receiving during the taxable year a part payment on a mortgage note acquired at a 20 per cent discount from its face value received income to the extent of 20 per cent of the amount of the payment. 2. The evidence is insufficient to show that the Commissioner was in error in failing to credit any part of an overpayment of tax for the fiscal year ending within the calendar year 1922 against a tax due upon the calendar year return for 1921.
1Opinion of the Court
*284OPINION.
Smith :
On the basis of the decision of the Board in Corn Exchange Bank v. Commissioner, 6 B. T. A. 158, and of the decision of the Supreme Court in New York Life Insurance Co. v. Edwards, 271 U. S. 109, the petitioner contends that no part of the installment payment of $10,000 on the mortgage received during the calendar year 1921 constituted income of 1921, but that the entire amount was a return of principal. It is the petitioner’s contention that it could receive no income from the mortgage until it had received $240,000 representing its investment in the mortgage.
The decisions…
2Cases cited1 opinion
- New York Life Insurance v. EdwardsSupreme Court of the United States · 1926
3Cited by20 opinions
- Underhill v. CommissionerUnited States Tax Court · 1966
- Liftin v. CommissionerUnited States Tax Court · 1961
- Hatch v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1951
- Darby Investment Corporation v. Commissioner or Internal RevenueCourt of Appeals for the Sixth Circuit · 1963
- Earl A. Phillips and Dorothy M. Phillips v. William E. Frank, District Director of Internal RevenueCourt of Appeals for the Ninth Circuit · 1961
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