Wagegro Corp. v. Commissioner
United States Board of Tax Appeals
1. The income from a sale of personalty upon ten equal annual installments of the principal price and the purchaser's additional payment of an obligation of the vendor, such payment alone being made in the year of sale and being less than 40 percent of the selling price, may properly be taxed on the installment basis of the Revenue Act of 1932, section 44. 2. A deduction for salaries must be supported by evidence of the services performed sufficient to establish the…
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1. The income from a sale of personalty upon ten equal annual installments of the principal price and the purchaser's additional payment of an obligation of the vendor, such payment alone being made in the year of sale and being less than 40 percent of the selling price, may properly be taxed on the installment basis of the Revenue Act of 1932, section 44. 2. A deduction for salaries must be supported by evidence of the services performed sufficient to establish the reasonableness of the salaries paid, and where it appears only that some services were performed but not that the amount paid is…
1Opinion of the Court
*1228OPINION.
S'ternhagen :
1. The petitioner, in accounting on its return for the gain from the sale of the Yosemite shares, used the installment basis recognized in the Revenue Act of 1932, section 44 (b). The Commissioner refused the use of the installment basis and included in petitioner’s income for the fiscal year ended May 31, 1933, the difference between the “proceeds of sale of stock $850,000” and the “cost and other expenses of sale” $156,627.06, as “profit from sale $693,-472.94.”
In our opinion, the petitioner is clearly entitled to use the installment basis. This was a “casual sale of…
2Cited by28 opinions
- Miller Mfg. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1945
- Sholund v. CommissionerUnited States Tax Court · 1968
- Irwin v. CommissionerUnited States Tax Court · 1966
- United States v. James H. Marshall and Thelma MarshallCourt of Appeals for the Ninth Circuit · 1966
- Maddox v. CommissionerUnited States Tax Court · 1978
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