United States Freight Company and Subsidiaries v. The United States

My disagreement with Part I of the court’s opinion (on § 165(f)) — I concur substantially with Part II (on § 1234)— is with the reasoning and not necessarily with the result. The difficulty is that there are two separate lines-of-authority, with divergent tendencies, bearing rather directly on our problem. The one, presssed by the Government, is exemplified by Turzillo v. Commissioner of Internal Revenue, 346 F.2d 884 (C.A. 6, 1965), in which the taxpayer-buyer who received money in settlement of an aborted transaction, comparable to the one we have here, was held to have made a “sale or…