Elliott Paint & Varnish Co. v. Commissioner
United States Board of Tax Appeals
1. EVIDENCE - PAROL EVIDENCE TO VARY THE TERMS OF A WRITTEN CONTRACT. - While parol evidence was admissible to show the true agreement of the parties, even though it would tend to vary the terms of their written contract, held, that the actual agreement of the parties was shown by the written contract. 2. INCOME TAX DEDUCTIONS - INTEREST. - Where the parties agreed that the purchase price of a piece of property in the amount of $40,000 should be paid in periodic payments…
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1. EVIDENCE - PAROL EVIDENCE TO VARY THE TERMS OF A WRITTEN CONTRACT. - While parol evidence was admissible to show the true agreement of the parties, even though it would tend to vary the terms of their written contract, held, that the actual agreement of the parties was shown by the written contract. 2. INCOME TAX DEDUCTIONS - INTEREST. - Where the parties agreed that the purchase price of a piece of property in the amount of $40,000 should be paid in periodic payments extending over a period of 15 years, held, that no part of the payments was interest.
1Opinion of the Court
*245OPINION.
Murdock:
The petitioner contends that a portion of the total amount paid to Mary B. Elliott during each of the taxable years was interest and not purchase price. This is directly contrary to the provisions of the written contract entered into by the parties, which shows that the payments of $3,000 made in each of the taxable years were entirely a part of the purchase price and were not interest. The petitioner contends that the true agreement of the parties, as shown by parol evidence, was an agreement to pay a purchase price of $27,500 and interest thereon in the amount of $12,500.…
2Cited by14 opinions
- Brown v. CommissionerUnited States Tax Court · 1961
- Kingsford Co. v. CommissionerUnited States Tax Court · 1964
- Berry v. CommissionerUnited States Tax Court · 1965
- Paduano v. CommissionerUnited States Tax Court · 1975
- Berry v. CommissionerUnited States Tax Court · 1965
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