Bankers Mortg. Co. v. Commissioner
United States Tax Court
In 1937 petitioner had a transaction with the Humble Oil & Refining Co. by which it received from that company $ 300,000 in cash and executed to Humble its two nonnegotiable notes due on or before thirty years after date, and at the same time executed a deed of trust purporting to secure payment of these notes by an assignment to a trustee of certain oil and gas and sulphur interests and royalties, and on the same day, and as a part of the same transaction, petitioner and…
Read the full summary
In 1937 petitioner had a transaction with the Humble Oil & Refining Co. by which it received from that company $ 300,000 in cash and executed to Humble its two nonnegotiable notes due on or before thirty years after date, and at the same time executed a deed of trust purporting to secure payment of these notes by an assignment to a trustee of certain oil and gas and sulphur interests and royalties, and on the same day, and as a part of the same transaction, petitioner and Humble executed a contract modifying in certain important particulars the provisions of the notes and deed of trust. Held,…
1Opinion of the Court
OPINION.
Black, Judge:
As has already been stated, the primary question in this proceeding is whether the transaction by which Humble paid $300,000 to petitioner in 1937 and took petitioner’s nonnegotiable notes therefor and also received a transfer from petitioner of certain mineral interests, including oil and gas royalties, was a sale by petitioner to Humble, as the Commissioner has determined, or whether it was a loan by Humble to petitioner — repayable by petitioner and secured by a mortgage, as petitioner contends. If it was a loan, then of course it follows that the $300,000 in question…
2Cases cited5 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- In re Grand Union Co.Court of Appeals for the Second Circuit · 1914
- Hammond v. CommissionerUnited States Tax Court · 1942
- Vinson v. W. T. Carter Bro.Court of Appeals of Texas · 1913
3Cited by5 opinions
- Bankers Mortgage Company v. United StatesCourt of Appeals for the Fifth Circuit · 1970
- United States v. James L. IveyCourt of Appeals for the Fifth Circuit · 1969
- Bankers Mortg. Co. v. CommissionerUnited States Tax Court · 1943
- Crabtree v. CommissionerUnited States Tax Court · 1984
- Gap Anthracite Co. v. CommissionerUnited States Tax Court · 1972