Ludlow v. Commissioner
United States Tax Court
On December 29, 1955, the petitioner and the other stockholders of a corporation executed a contract to sell all of their stock. It was the intention of all the parties to the contract to qualify the sale as an installment sale by limiting the cash payment to be received by each stockholder in 1955 to an amount that did not exceed 30 percent of his selling price.
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On December 29, 1955, the petitioner and the other stockholders of a corporation executed a contract to sell all of their stock. It was the intention of all the parties to the contract to qualify the sale as an installment sale by limiting the cash payment to be received by each stockholder in 1955 to an amount that did not exceed 30 percent of his selling price. Due to a mistake in the computation of the amounts stated in the contract some of the stockholders, including petitioner, were paid more than the statutory maximum. When the mistake was discovered the buyer expressed his willingness…
1Opinion of the Court
Mulroney, Judge:
Respondent determined a deficiency in the petitioners’ income tax for 1955 in the amount of $23,154.16. The only issue is whether the petitioners are entitled to report the income from the sale of certain shares of stock in 1955 on the installment basis within the meaning of section 453 of the Internal Revenue Code of 1954.
FINDINGS OF FACT.
Some of the facts have been stipulated and they are hereby incorporated by this reference.
Lewis M. Ludlow and Harriet M. Ludlow, husband and wife, are residents of Parkersburg, West Virginia. They filed a joint income tax return for 1955…
2Cases cited4 opinions
- Hammond v. CommissionerUnited States Tax Court · 1942
- Blum's, Inc. v. CommissionerUnited States Board of Tax Appeals · 1927
- Funsten v. CommissionerUnited States Board of Tax Appeals · 1941
- Boone v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by15 opinions
- Smith v. CommissionerUnited States Tax Court · 1971
- William A. And Margaret K. Tombari v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- Stiles v. CommissionerUnited States Tax Court · 1978
- Robinson v. CommissionerUnited States Tax Court · 1970
- Rodman v. CommissionerUnited States Tax Court · 1971
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