Lowe v. Commissioner
United States Tax Court
Petitioner in 1955 sold to one Levitus all of the stock of a corporation which had a lease on a hotel. Levitus made a downpayment on the purchase price in 1955, gave petitioner a promissory note for the balance, deposited the shares with him as security, and immediately began managing the hotel.
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Petitioner in 1955 sold to one Levitus all of the stock of a corporation which had a lease on a hotel. Levitus made a downpayment on the purchase price in 1955, gave petitioner a promissory note for the balance, deposited the shares with him as security, and immediately began managing the hotel. Levitus continued such management until he defaulted in payment of the remaining purchase price in 1958. Levitus then reconveyed the stock to taxpayer and taxpayer released him from any further obligation under the 1955 sale. Taxpayer retained $ 22,500 previously paid by Levitus toward the purchase…
1Opinion of the Court
Dawson, Judge:1
Kespondent determined a deficiency in petitioners’ income tax for the taxable year ended December 31, 1958, in the amount of $14,364.84.
The deficiency is based upon respondent’s determinations that $22,500 retained by Alvin B. Lowe on the reacquisition of stock in 1958 represents ordinary income to him and that certain management expenses are not deductible as ordinary and necessary business expenses. The parties have agreed that a portion of the management expenses is deductible. Thus the only issue remaining for decision is whether the amount retained by petitioner Alvin B.…
2Cases cited23 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
- Osenbach v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1952
- Dial v. CommissionerUnited States Tax Court · 1955
- Harold Wener v. Commissioner of Internal Revenue, Molly Wener v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1957
18 more not listed; retrieve them via the Exa API.
3Cited by32 opinions
- Derr v. CommissionerUnited States Tax Court · 1981
- Bresler v. CommissionerUnited States Tax Court · 1975
- Anderson v. CommissionerUnited States Tax Court · 1971
- Mitchell v. CommissionerUnited States Tax Court · 1969
- Philip Handelman and Esther Handelman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1975
27 more not listed; retrieve them via the Exa API.