Boatman v. Commissioner
United States Tax Court
Petitioner in 1951 entered into an executory contract for the sale of his farm. The selling price was $ 60,000 with $ 12,000 payable upon the execution of the contract and the balance payable upon delivery of the deed in 1952. The contract also provided for liquidated damages of 20 per cent of the selling price, or $ 12,000, in case either party defaulted. In 1952 the vendee did not pay the balance of the purchase price of the farm and the sale was not carried out.
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Petitioner in 1951 entered into an executory contract for the sale of his farm. The selling price was $ 60,000 with $ 12,000 payable upon the execution of the contract and the balance payable upon delivery of the deed in 1952. The contract also provided for liquidated damages of 20 per cent of the selling price, or $ 12,000, in case either party defaulted. In 1952 the vendee did not pay the balance of the purchase price of the farm and the sale was not carried out. Petitioner retained the $ 12,000. Held, the $ 12,000 retained by the petitioner was liquidated damages under the contract, due to…
1Opinion of the Court
Ralph A. and Azalea Boatman, Petitioners, v. Commissioner of Internal Revenue, Respondent
Boatman v. Commissioner
Docket No. 67388
United States Tax Court
32 T.C. 1188; 1959 U.S. Tax Ct. LEXIS 91;
September 14, 1959, Filed
Decision will be entered for the respondent.
Petitioner in 1951 entered into an executory contract for the sale of his farm. The selling price was $ 60,000 with $ 12,000 payable upon the execution of the contract and the balance payable upon delivery of the deed in 1952. The contract also provided for liquidated damages of 20 per cent of the selling price, or $ 12,000, in case…
2Cases cited10 opinions
- Helvering v. William Flaccus Oak Leather Co.Supreme Court of the United States · 1941
- Iowa v. McFarlandSupreme Court of the United States · 1884
- Bihlmaier v. CommissionerUnited States Tax Court · 1951
- Rogers v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1939
- Rogers v. CommissionerUnited States Board of Tax Appeals · 1938
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