Sherwood v. Commissioner
United States Tax Court
Ordinary Income or Capital Gain -- Accounts Receivable Collected -- Section 117 (a) (4). -- A business, in which the cash method of accounting was used, was sold but the accounts receivable were retained and later collected by the creditor from the debtors. Held, the income from the collection of the accounts was ordinary income and not capital gains.
1Opinion of the Court
DeWitt M. Sherwood and Edith Sherwood, Petitioners, v. Commissioner of Internal Revenue, Respondent
Sherwood v. Commissioner
Docket No. 41246
United States Tax Court
20 T.C. 733; 1953 U.S. Tax Ct. LEXIS 98;
June 30, 1953, Promulgated
Decision will be entered for the respondent.
Ordinary Income or Capital Gain -- Accounts Receivable Collected -- Section 117 (a) (4). -- A business, in which the cash method of accounting was used, was sold but the accounts receivable were retained and later collected by the creditor from the debtors. Held, the income from the collection of the accounts was ordinary…
2Cases cited7 opinions
- Hale v. HelveringCourt of Appeals for the D.C. Circuit · 1936
- Smith v. CommissionerUnited States Tax Court · 1953
- Fahey v. CommissionerUnited States Tax Court · 1951
- Sherwood v. CommissionerUnited States Tax Court · 1953
- Sovik v. ShaughnessyDistrict Court, N.D. New York · 1950
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