Gibbs & Hudson v. Commissioner
United States Board of Tax Appeals
1. Amounts paid by a corporation to two of its officers for architectural and other services relating to the construction of a building may be included in the cost of the building to determine gain or loss from sale. 2. The amount paid in 1932 in settlement of a claim of an employee, growing out of an alleged promise in 1928 to pay the claimant a bonus when a building was sold, held, upon the evidence, to be no part of the cost of the building sold in 1930. 3. Property…
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1. Amounts paid by a corporation to two of its officers for architectural and other services relating to the construction of a building may be included in the cost of the building to determine gain or loss from sale. 2. The amount paid in 1932 in settlement of a claim of an employee, growing out of an alleged promise in 1928 to pay the claimant a bonus when a building was sold, held, upon the evidence, to be no part of the cost of the building sold in 1930. 3. Property placed in escrow as part of the entire price of a building sold on the installment basis, held no part of the initial payment…
1Opinion of the Court
*208OPINION.
SterNHAgen :
1. The Commissioner, in the notice of deficiency, said, as to 1930:
1. Gain from sale of apartment understated-$142,031.55
and explained this item thus:
Profit realized in 1030 is $155i639.21, whereas the profit reported on the 1930 return was $13,607.76; the difference, or $142,031.55, is included in the adjusted income.
*209This adjustment by the Commissioner is not broken down in the deficiency notice, but it seems to embrace several adjustments which must be separately considered.(a) In computing the gain from the sale of the Lowell apartment building, the petitioner includes,…
2Cases cited2 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Burnet v. S. & L. Building Corp.Supreme Court of the United States · 1933
3Cited by25 opinions
- United States v. KoshlandCourt of Appeals for the Ninth Circuit · 1954
- Peters v. CommissionerUnited States Tax Court · 1968
- Soares v. CommissionerUnited States Tax Court · 1968
- Boynton v. PedrickCourt of Appeals for the Second Circuit · 1955
- Humphrey v. CommissionerUnited States Tax Court · 1946
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