Daehler v. Commissioner
United States Tax Court
Petitioner was employed as a salesman by Anaconda, a real estate broker. Through Anaconda, he purchased real estate listed with another broker for sale at $ 60,000. Taking into account the fact that if he procured a buyer for the property for $ 52,500 he would realize a commmission of $ 1,837.50 on the sale, and by reason thereof he could acquire the property for his own account at a cost of $ 50,662.50, he made a formal offer of $ 52,500 for the property, and in due course…
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Petitioner was employed as a salesman by Anaconda, a real estate broker. Through Anaconda, he purchased real estate listed with another broker for sale at $ 60,000. Taking into account the fact that if he procured a buyer for the property for $ 52,500 he would realize a commmission of $ 1,837.50 on the sale, and by reason thereof he could acquire the property for his own account at a cost of $ 50,662.50, he made a formal offer of $ 52,500 for the property, and in due course was repaid $ 1,837.50, which was the commission he would have earned on the sale to an outside party. Held, that the…
1Opinion of the Court
OPINION.
Turner, Judge:
The main question to be decided is whether the amount petitioner received from Anaconda upon the purchase of the property in question is taxable income, as determined by respondent, or is a reduction in the purchase price of the property, as contended by petitioner.
We do not think the facts support respondent’s position.
The evidence shows Hicks, the owner, received for his property the net amount of $47,250, which amount he would have accepted had he not been obligated to pay or if he had been released from the requirement to pay or bear a 10 per cent brokerage…
2Cases cited4 opinions
- Smith v. CommissionerUnited States Tax Court · 1953
- Hickman v. Comm'rUnited States Tax Court · 1958
- Benjamin v. HoeyCourt of Appeals for the Second Circuit · 1944
- Sherwood v. CommissionerUnited States Tax Court · 1953
3Cited by1 opinion
- Daehler v. CommissionerUnited States Tax Court · 1959