Brown v. Commissioner
United States Tax Court
Petitioners transferred their stock in a corporate enterprise, along with two promissory notes totaling $ 125,000, to I, a tax-exempt organization, in consideration for a non-interest-bearing note in the amount of $ 1,300,000. I was obligated to pay petitioners 90 percent of the income it received from a lease of the corporate assets in payment on the note but was not otherwise bound to make payment.
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Petitioners transferred their stock in a corporate enterprise, along with two promissory notes totaling $ 125,000, to I, a tax-exempt organization, in consideration for a non-interest-bearing note in the amount of $ 1,300,000. I was obligated to pay petitioners 90 percent of the income it received from a lease of the corporate assets in payment on the note but was not otherwise bound to make payment. I liquidated the corporation, sold its current assets subject to liabilities (other than the $ 125,000 of notes), and leased the fixed assets for a period of 5 years to a new corporation, F,…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioners’ income taxes for the years and in the amounts as follows:
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The principal issue for decision is whether the gain realized by-petitioners upon the disposition of their stock in Clay Brown & Company is long-term capital gain from the sale of such stock as reported by petitioners or ordinary income from a transaction which does not come within the provisions of section 117(a) of the Internal Revenue Code of 1939, and section 1222(3) of the Internal Revenue Code of 1954 as determined by respondent.
Respondent contends, in…
2Cases cited20 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Burnet v. HarmelSupreme Court of the United States · 1932
- Higgins v. SmithSupreme Court of the United States · 1940
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- Bauschard v. CommissionerUnited States Tax Court · 1959
15 more not listed; retrieve them via the Exa API.
3Cited by38 opinions
- Commissioner v. BrownSupreme Court of the United States · 1965
- Narver v. CommissionerUnited States Tax Court · 1980
- Brountas v. CommissionerUnited States Tax Court · 1979
- Curry v. CommissionerUnited States Tax Court · 1965
- Lester Crown v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1978
33 more not listed; retrieve them via the Exa API.