Beaton v. Commissioner
United States Tax Court
(1) In 1968, P sold Q all the stock of B. P continued to serve as the president of B, and in 1973, he misappropriated funds of B. He claimed that Q had defrauded him in the 1968 sale and that he was entitled to compensation for the fraud. Subsequently, P sued to recover his stock, and B sued to recover the funds. In 1977, the litigation was settled; P relinquished his claim to the stock and was permitted to retain the funds.
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(1) In 1968, P sold Q all the stock of B. P continued to serve as the president of B, and in 1973, he misappropriated funds of B. He claimed that Q had defrauded him in the 1968 sale and that he was entitled to compensation for the fraud. Subsequently, P sued to recover his stock, and B sued to recover the funds. In 1977, the litigation was settled; P relinquished his claim to the stock and was permitted to retain the funds. Held, since P did not receive the misappropriated funds as the result of a sale or exchange and since he received the funds in 1973 without the recognition of an…
1Opinion of the Court
COLIN F. and ELEANOR M. BEATON, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Beaton v. Commissioner
Docket No. 1884-77.
United States Tax Court
T.C. Memo 1980-413; 1980 Tax Ct. Memo LEXIS 170; 40 T.C.M. (CCH) 1324; T.C.M. (RIA) 80413;
September 22, 1980, Filed(1) In 1968, P sold Q all the stock of B. P continued to serve as the president of B, and in 1973, he misappropriated funds of B. He claimed that Q had defrauded him in the 1968 sale and that he was entitled to compensation for the fraud. Subsequently, P sued to recover his stock, and B sued to recover the funds. In 1977, the…
2Cases cited15 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- James v. United StatesSupreme Court of the United States · 1961
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Enoch v. CommissionerUnited States Tax Court · 1972
10 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Jack and Florence Baker v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1982
- Baker v. CommissionerUnited States Tax Court · 1980
- Baker v. CommissionerUnited States Tax Court · 1980