Carter v. Commissioner
United States Tax Court
1. A corporation which was engaged in the business of brokerage of oil and was on the cash basis of accounting dissolved in 1942 and distributed in kind to its sole stockholder assets of value more than the cost basis of her stock and also 32 brokerage commission contracts, payable by sellers of oil brokered, with fair market value not ascertainable. No further services were required under the contracts.
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1. A corporation which was engaged in the business of brokerage of oil and was on the cash basis of accounting dissolved in 1942 and distributed in kind to its sole stockholder assets of value more than the cost basis of her stock and also 32 brokerage commission contracts, payable by sellers of oil brokered, with fair market value not ascertainable. No further services were required under the contracts. They were collectible after payment by purchasers, in the following year, for brokered oil. In 1943 the stockholder-distributee collected on the contracts. Held, that the collections, except…
1Opinion of the Court
OPINION.
Disney, Judge:
The primary question confronting us here is whetherl in 1943 Susan J. Carter had ordinary income or capital gain from col-I lections made on the 32 commission contracts, which, it is agreed, hadj no ascertainable fair market value when distributed to her in thd corporate liquidation. The petitioner contends that, under section 115 (c) of the Internal Revenue Code, the surrender and exchange of her stock in the corporation for the corporate assets resulted in capital gain to her, and that, the contracts having had no ascertainable fair market value, the later collections…
2Cases cited6 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- Michael Flynn Mfg. Co. v. CommissionerUnited States Tax Court · 1944
- Helvering v. Chester N. Weaver Co.Supreme Court of the United States · 1938
- Nicholson v. CommissionerUnited States Tax Court · 1944
- Jud Plumbing & Heating, Inc. v. CommissionerUnited States Tax Court · 1945
1 more not listed; retrieve them via the Exa API.
3Cited by60 opinions
- Osenbach v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1952
- United States v. Lynch. Lynch v. United StatesCourt of Appeals for the Ninth Circuit · 1951
- J. C. Williamson, Transferee of Williamson Well Service, Inc., a Dissolved Corporation v. United StatesUnited States Court of Claims · 1961
- Artnell Co. v. CommissionerUnited States Tax Court · 1967
- Bradford v. CommissionerUnited States Tax Court · 1954
55 more not listed; retrieve them via the Exa API.