Western Oaks Bldg. Corp. v. Commissioner
United States Tax Court
On the sale of a house petitioner received cash from the purchasers, cash from a savings and loan association on a mortgage loan to the purchaser, and a savings account or savings and loan shares set up in petitioner's name, restricted so that petitioner could only withdraw $ 100 from the account for every $ 200 paid by the purchaser on the principal of the mortgage loan.
Read the full summary
On the sale of a house petitioner received cash from the purchasers, cash from a savings and loan association on a mortgage loan to the purchaser, and a savings account or savings and loan shares set up in petitioner's name, restricted so that petitioner could only withdraw $ 100 from the account for every $ 200 paid by the purchaser on the principal of the mortgage loan. In the event that the purchaser defaulted and the petitioner did not take over the property and the mortgage, the amount in the restricted account would be forfeited. The petitioners were not otherwise liable in case of a…
1Opinion of the Court
OPINION
These facts present us with several issues for decision: (1) Are the petitioners who used the accrual method of accounting required to include in their gross income the face amount of the savings accounts when received ? (2) If so, are they entitled to deduct as an addition to a reserve for bad debts the face amount of the savings accounts or some portion thereof? (3) Are the petitioners who used the cash method of accounting required to include in their gross income the fair market value of the savings accounts when received ?
The Accrual Method Petitioners
The Inclusion Issue. — The…
2Cases cited23 opinions
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Commissioner v. HansenSupreme Court of the United States · 1959
- Marcello v. CommissionerUnited States Tax Court · 1964
- H. Liebes & Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1937
- Johnston v. CommissionerUnited States Tax Court · 1950
18 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Edgar v. CommissionerUnited States Tax Court · 1971
- Warren Jones Co. v. CommissionerUnited States Tax Court · 1973
- Stiles v. CommissionerUnited States Tax Court · 1978
- John E. Reed v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1983
- Griffith v. CommissionerUnited States Tax Court · 1980
22 more not listed; retrieve them via the Exa API.