James E. Caldwell & Co. v. Commissioner
United States Tax Court
1. Upon the incorporation of petitioner, its principal officer conveyed to it approximately 1,100 acres of real estate for shares of petitioner's stock; and such shares were then transferred to trusts for the benefit of the officer's family. Thereafter, a judgment creditor of the officer, finding him to be insolvent, filed a suit in equity to partially annul and rescind the conveyances, or in the alternative to recover the stock.
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1. Upon the incorporation of petitioner, its principal officer conveyed to it approximately 1,100 acres of real estate for shares of petitioner's stock; and such shares were then transferred to trusts for the benefit of the officer's family. Thereafter, a judgment creditor of the officer, finding him to be insolvent, filed a suit in equity to partially annul and rescind the conveyances, or in the alternative to recover the stock. Such suit was compromised and settled upon payment by petitioner to the officer's creditor of $ 50,000 plus $ 400.65 court costs. Held, that petitioner did not, by…
1Opinion of the Court
OPINION.
Pieece, Judge :
The first question for consideration is how the basis of the petitioner’s real estate was affected by its settlement of the Chancery Court proceeding, wherein the First National Bank of St. Louis, as a judgment creditor of Caldwell, had sought to partially annul and rescind Caldwell’s conveyances of such real estate, on the ground that the property had been transferred in fraud of creditors. Petitioner’s contention is that court costs and the $50,000 paid to the creditor in compromise of such proceeding, represented expenditures incurred in removing a cloud on its…
2Cases cited22 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Helvering v. TaylorSupreme Court of the United States · 1935
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Lyeth v. HoeySupreme Court of the United States · 1938
17 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- Redwood Empire Sav. & Loan Asso. v. CommissionerUnited States Tax Court · 1977
- Bradford v. CommissionerUnited States Tax Court · 1978
- James E. Caldwell & Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1956
- Shoe Corp. of America v. CommissionerUnited States Tax Court · 1957
- Ostrom v. CommissionerUnited States Tax Court · 1981
16 more not listed; retrieve them via the Exa API.