Sherwood v. Commissioner
United States Tax Court
Ordinary Income or Capital Gain -- Accounts Receivable Collected -- Section 117 (a) (4). -- A business, in which the cash method of accounting was used, was sold but the accounts receivable were retained and later collected by the creditor from the debtors. Held, the income from the collection of the accounts was ordinary income and not capital gains.
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined a deficiency of $392.16 in the income tax of the petitioners for 1949 and an addition of $46.72 under section 294 (d) (2) of the Internal Revenue Code for substantial understatement of estimated tax. The issues are whether the amount collected on accounts receivable after the sale of the rest of the business was ordinary income or capital gain to taxpayers on a cash receipts basis and whether the addition was proper. The facts have been presented by a stipulation which is adopted as the findings of fact.
The petitioners, husband and wife,…
2Cases cited6 opinions
- Hale v. HelveringCourt of Appeals for the D.C. Circuit · 1936
- Smith v. CommissionerUnited States Tax Court · 1953
- Fahey v. CommissionerUnited States Tax Court · 1951
- Sovik v. ShaughnessyDistrict Court, N.D. New York · 1950
- Sovik v. Shaughnessy. Smith v. ShaughnessyCourt of Appeals for the Second Circuit · 1951
1 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Smith v. CommissionerUnited States Tax Court · 1959
- West v. CommissionerUnited States Tax Court · 1962
- Daehler v. CommissionerUnited States Tax Court · 1959
- Abraham v. CommissionerUnited States Tax Court · 1962
- Blunt v. CommissionerUnited States Tax Court · 1966
11 more not listed; retrieve them via the Exa API.