Legal Opinion

Smith v. Commissioner

United States Tax Court

Decided April 30, 1984No. Docket No. 15864-81Published

Petitioner sold his 25-percent stock interest in a real estate brokerage firm to two remaining shareholders and/or the corporation. The stock purchase agreement between the shareholders and the corporation allocated amounts to be paid petitioner between purchase price and "commissions due."

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Petitioner sold his 25-percent stock interest in a real estate brokerage firm to two remaining shareholders and/or the corporation. The stock purchase agreement between the shareholders and the corporation allocated amounts to be paid petitioner between purchase price and "commissions due." Held: On the facts of this case, the agreement was ambiguous and, accordingly, the rule of Commissioner v. Danielson, 378 F.2d 771 (3d Cir. 1967), vacating and remanding 44 T.C. 549 (1965), that the literal terms of an agreement are to be determinative for income tax purposes, does not apply. The substance…

1Opinion of the Court

John M. Smith and Eileen A. Smith, Petitioners v. Commissioner of Internal Revenue, Respondent

Smith v. Commissioner

Docket No. 15864-81

United States Tax Court

82 T.C. 705; 1984 U.S. Tax Ct. LEXIS 75; 82 T.C. No. 54;

April 30, 1984, Filed

Decision will be entered under Rule 155.

Petitioner sold his 25-percent stock interest in a real estate brokerage firm to two remaining shareholders and/or the corporation. The stock purchase agreement between the shareholders and the corporation allocated amounts to be paid petitioner between purchase price and "commissions due." Held: On the facts of this case,…

2Cases cited19 opinions

  1. Welch v. HelveringSupreme Court of the United States · 1933
  2. Gregory v. HelveringSupreme Court of the United States · 1935
  3. Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
  4. Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
  5. Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967

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