Murray v. Commissioner
United States Board of Tax Appeals
Where more than 75 percent of the purchase price of personal property was placed in escrow as security for petitioners' agreement to refrain from entering a competing business, and the escrow agent was instructed to release one fifth of the escrow funds each year provided the vendor had not entered a competing business, the vendor is entitled to report the profits resulting from the sale on the installment basis, and receipt of the balance of the purchase price by the escrow…
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Where more than 75 percent of the purchase price of personal property was placed in escrow as security for petitioners' agreement to refrain from entering a competing business, and the escrow agent was instructed to release one fifth of the escrow funds each year provided the vendor had not entered a competing business, the vendor is entitled to report the profits resulting from the sale on the installment basis, and receipt of the balance of the purchase price by the escrow agent does not constitute constructive receipt to the vendor, even though the latter has the right to invest and…
1Opinion of the Court
*628OPINION.
Maequette:
The controversy here is whether the profit derived from the sale of the capital stock of the Herald Publishing Co. should be reported on the installment basis, or should be reported entirely in the year 1926 upon the theory that the sale was a closed and completed transaction in that year.
Section 212 (d) of the Eevenue Act of 1926 authorizes taxpayers to report income on the installment basis in certain circumstances, viz.:
* * * In the case (1) of a casual sale or other casual disposition of personal property for a price exceeding $1,000, or (2) * * *, if in either case the…
2Cases cited4 opinions
- Merren v. CommissionerUnited States Board of Tax Appeals · 1929
- Moisseiff v. CommissionerUnited States Board of Tax Appeals · 1930
- Braunwarth v. CommissionerUnited States Board of Tax Appeals · 1931
- Walker v. CommissionerUnited States Board of Tax Appeals · 1931
3Cited by8 opinions
- Stiles v. CommissionerUnited States Tax Court · 1978
- Rhodes v. United StatesDistrict Court, W.D. South Carolina · 1965
- Carp v. CommissionerUnited States Board of Tax Appeals · 1934
- Carp v. CommissionerUnited States Board of Tax Appeals · 1934
- Murray v. CommissionerUnited States Board of Tax Appeals · 1933
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