Gatlin v. Commissioner
United States Board of Tax Appeals
1. Money obtained to carry on a business under a contract purporting to be an outright sale and purchase of accounts held to be advancements in the nature of loans, notwithstanding the form of the contract and that it violated the law of the state of the contracting parties as to usury. 2. Where merchandise shipped to petitioner's customers was not repurchased by petitioner in accordance with a contract existing between him and his customers, wherein he was obligated to…
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1. Money obtained to carry on a business under a contract purporting to be an outright sale and purchase of accounts held to be advancements in the nature of loans, notwithstanding the form of the contract and that it violated the law of the state of the contracting parties as to usury. 2. Where merchandise shipped to petitioner's customers was not repurchased by petitioner in accordance with a contract existing between him and his customers, wherein he was obligated to repurchase if a specified amount had not been resold by him within a given time, held the title to such merchandise was in…
1Opinion of the Court
*53OPINION.
ARNOLD:
Under the above state of facts was the $135,223.28 received by petitioner from Pacific Factors, Inc., prior to the incorporation of petitioner’s business, income to petitioner from the sale of his accounts, or was it money advanced to him in the nature of loans? Respondent contends that under the contract of March 15, 1929, petitioner sold and Pacific Factors, Inc., bought outright the accounts of petitioner’s customers and the use of the words, sale and purchase, and other like expressions in the contract are controlling on the issue here presented. He further contends that…
2Cases cited8 opinions
- Peugh v. DavisSupreme Court of the United States · 1878
- Russell v. SouthardSupreme Court of the United States · 1851
- Houghton v. BurdenSupreme Court of the United States · 1913
- Woodard v. Glenwood Lumber Co.California Supreme Court · 1915
- O'shea v. New York, C. & St. L. R. Co.Court of Appeals for the Seventh Circuit · 1901
3 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Conlorez Corp. v. CommissionerUnited States Tax Court · 1968
- Ross Glove Co. v. CommissionerUnited States Tax Court · 1973
- Russo v. CommissionerUnited States Tax Court · 1977
- Shaw v. CommissionerUnited States Tax Court · 1972
- Conlorez Corp. v. CommissionerUnited States Tax Court · 1968
10 more not listed; retrieve them via the Exa API.