Wilson v. Commissioner
United States Tax Court
Developers and builders advanced funds to water companies and municipalities sufficient to finance extension of water facilities into new real estate projects. The water companies and municipalities gave the developers and builders "water refund contracts" in which the former promised to repay the latter a certain percentage of gross revenues for a specified number of years, or until the principal sum was repaid, whichever occurred first.
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Developers and builders advanced funds to water companies and municipalities sufficient to finance extension of water facilities into new real estate projects. The water companies and municipalities gave the developers and builders "water refund contracts" in which the former promised to repay the latter a certain percentage of gross revenues for a specified number of years, or until the principal sum was repaid, whichever occurred first. Although the water companies and municipalities kept records of the ownership status and payments, the contracts did not signify on their faces that such…
1Opinion of the Court
IToxt, Judge:
Respondent determined deficiencies in petitioners’ income taxes in the following years and amounts:
Tear Deficiency
1961-$23,773. 87
1962 _ 30, 500. 74
1963 - 31,242.41
After concession of certain issues by petitioners, only two issues remain for decision:(1) Whether certain water refund contracts are “evidences of indebtedness” within the meaning of section 1232(a),1 thus qualifying amounts received on their retirement as amounts received in exchange therefor, and(2) If this issue is decided affirmatively, whether water refund contracts which were issued before January 1, 1955, were…
2Cases cited18 opinions
- Fairbanks v. United StatesSupreme Court of the United States · 1939
- Commissioner of Internal Revenue v. Shamberg's EstateCourt of Appeals for the Second Circuit · 1944
- McClain v. CommissionerSupreme Court of the United States · 1941
- Gerard v. HelveringCourt of Appeals for the Second Circuit · 1941
- Hudson v. CommissionerUnited States Tax Court · 1953
13 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Falkoff v. CommissionerUnited States Tax Court · 1974
- Bradshaw v. United StatesUnited States Court of Claims · 1982
- Scallen v. CommissionerUnited States Tax Court · 1987
- Falkoff v. CommissionerUnited States Tax Court · 1974
- Wilson v. CommissionerUnited States Tax Court · 1969