Wheeler v. Commissioner
United States Tax Court
Petitioner, relying on W's agreement to secure financing for improvements to be made on petitioner's land, demolished an existing building. When W failed or refused to secure the financing, petitioner brought suit and recovered a judgment for a principal sum plus interest. During the course of the litigation, petitioner sold the land for a sum in excess of his adjusted basis in the property, and included such excess in his income for the year of the sale.
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Petitioner, relying on W's agreement to secure financing for improvements to be made on petitioner's land, demolished an existing building. When W failed or refused to secure the financing, petitioner brought suit and recovered a judgment for a principal sum plus interest. During the course of the litigation, petitioner sold the land for a sum in excess of his adjusted basis in the property, and included such excess in his income for the year of the sale. Held, since petitioner, in the year of the sale, had recovered his adjusted basis in the property, he is not entitled to treat any part of…
1Opinion of the Court
Featherston, Judge:
Respondent determined a deficiency in petitioner’s Federal income tax for 1967 in the amount of $3,711.83 and an addition to his tax under section 6653(a) 1 in the amount of $185.59. Petitioner has conceded certain adjustments, and the only issues remaining for decision are as follows:(1) Whether petitioner realized income, taxable in part as long-term capital gain and in part as ordinary income, upon the receipt of the payment in 1967 of a judgment which he obtained against S. E. White; and(2) If petitioner realized income from the payment of that judg-meat, whether any…
2Cases cited21 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Hort v. CommissionerSupreme Court of the United States · 1941
- Wheeler v. WhiteTexas Supreme Court · 1965
- Kieselbach v. CommissionerSupreme Court of the United States · 1943
- Harrison E. Spangler and Myrtle B. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
16 more not listed; retrieve them via the Exa API.
3Cited by28 opinions
- Kovacs v. CommissionerUnited States Tax Court · 1993
- Bresler v. CommissionerUnited States Tax Court · 1975
- Aames v. CommissionerUnited States Tax Court · 1990
- Goldring v. United StatesCourt of Appeals for the Fifth Circuit · 2021
- Davis v. United StatesCourt of Appeals for the Ninth Circuit · 1979
23 more not listed; retrieve them via the Exa API.