Republic Supply Co. v. Commissioner
United States Tax Court
Petitioner acquired the operating assets of an existing oil field products business. To accomplish the purchase petitioner borrowed funds of which the repayment of a portion was guaranteed by Phillips (Phillips loan). Phillips also agreed to purchase a determined amount of products from petitioner who was to repay the Phillips loan with a percentage of its gross profit from these sales.
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Petitioner acquired the operating assets of an existing oil field products business. To accomplish the purchase petitioner borrowed funds of which the repayment of a portion was guaranteed by Phillips (Phillips loan). Phillips also agreed to purchase a determined amount of products from petitioner who was to repay the Phillips loan with a percentage of its gross profit from these sales. A year later Tascosa was organized and was part of a series of agreements between itself, petitioner, and Phillips. Pursuant to these agreements Tascosa advanced funds to petitioner (Tascosa loan) to be used…
1Opinion of the Court
OPINION
Sterrett, Judge:
The respondent determined a deficiency in petitioner’s Federal income tax for the taxable year 1969 in the amount of $184,914.56. One issue having been settled the sole remaining issue is whether petitioner realized additional income of $318,108.99 upon the expiration of an agreement with Tascosa Gas Co., and if so, whether such income was realized in 1969 or 1970.
All of the facts have been stipulated and are so found. The stipulation of facts, together with the exhibits attached thereto, are incorporated herein by this reference. This case was submitted by the parties…
2Cases cited13 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Helvering v. American Chicle Co.Supreme Court of the United States · 1934
- Litton Business Systems, Inc. v. CommissionerUnited States Tax Court · 1973
- Jack Daniel Distillery, Lem Motlow, Prop., Inc. v. The United StatesUnited States Court of Claims · 1967
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3Cited by8 opinions
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- Cleveland v. CommissionerUnited States Tax Court · 1983
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