Coffey v. Commissioner
United States Tax Court
Petitioners, the owners of all of the stock of a corporation, entered into agreement with two purchasers, wherein they sold their stock for $ 190,000, and reserved to themselves certain assets in which purchasers were not interested, one of which was a contract which entitled them to the receipt of $ 200,000 over a five-year period in the event the price of casinghead gas exceeded 2 1/2 cents per gallon.
Read the full summary
Petitioners, the owners of all of the stock of a corporation, entered into agreement with two purchasers, wherein they sold their stock for $ 190,000, and reserved to themselves certain assets in which purchasers were not interested, one of which was a contract which entitled them to the receipt of $ 200,000 over a five-year period in the event the price of casinghead gas exceeded 2 1/2 cents per gallon. Stock was not delivered to purchasers until corporation's directors authorized and directed distribution of pro rata interests in contract to petitioners. Held, 1. Interests in contract…
1Opinion of the Court
OPINION.
Johnson, Judge'.
The petitioners contend that they received the Cabot contingent payment of $200,000 as part of the consideration for stock sold and that any profit resulting from its receipt by them is taxable as a capital gain. In the alternative they urge that, if the distribution of the Cabot payment constituted a dividend, it is taxable to the purchasers of the stock and not to them. If we should hold that it was a dividend distribution taxable to them, they urge that its value was between $5,000 and $50,000.
The respondent contends that he correctly treated the distribution of the…
2Cases cited5 opinions
- Sinclair Refining Co. v. Jenkins Petroleum Process Co.Supreme Court of the United States · 1933
- Whitlow v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1936
- Nachod & United States Signal Co. v. HelveringCourt of Appeals for the Sixth Circuit · 1934
- HH Miller Industries Co. v. Commissioner of Int. Rev.Court of Appeals for the Sixth Circuit · 1932
- American Chemical Paint Co. v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1933
3Cited by9 opinions
- Tsn Liquidating Corporation, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1980
- Merrill Lynch & Co. v. Comm'rUnited States Tax Court · 2003
- Miller v. United StatesCourt of Appeals for the Sixth Circuit · 1956
- Miller v. United StatesCourt of Appeals for the Sixth Circuit · 1956
- Missimer v. CommissionerUnited States Tax Court · 1979
4 more not listed; retrieve them via the Exa API.