Smith v. Commissioner
United States Tax Court
Petitioner sold his 25-percent stock interest in a real estate brokerage firm to two remaining shareholders and/or the corporation. The stock purchase agreement between the shareholders and the corporation allocated amounts to be paid petitioner between purchase price and "commissions due."
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Petitioner sold his 25-percent stock interest in a real estate brokerage firm to two remaining shareholders and/or the corporation. The stock purchase agreement between the shareholders and the corporation allocated amounts to be paid petitioner between purchase price and "commissions due." Held: On the facts of this case, the agreement was ambiguous and, accordingly, the rule of Commissioner v. Danielson, 378 F.2d 771 (3d Cir. 1967), vacating and remanding 44 T.C. 549 (1965), that the literal terms of an agreement are to be determinative for income tax purposes, does not apply. The substance…
1Opinion of the Court
Dawson, Chief Judge:
Respondent determined a deficiency in petitioners’1 Federal income tax in the amount of $4,422 for the taxable year 1978. Due to concessions by the parties, the only issues remaining for decision are (1) whether $14,974 of a total sum of $24,974 received by petitioner pursuant to an agreement and addendum is eligible for capital gains treatment, and (2) if that amount is not eligible for capital gains treatment, whether petitioner is liable for self-employment tax in 1978.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulations of fact,…
2Cases cited18 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Gregory v. HelveringSupreme Court of the United States · 1935
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
13 more not listed; retrieve them via the Exa API.
3Cited by31 opinions
- Elrod v. CommissionerUnited States Tax Court · 1986
- Estate of Robert E. Cartwright, Deceased, Dorothy G. Cartwright v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1999
- Coulter Electronics, Inc. v. CommissionerUnited States Tax Court · 1990
- Fisher v. CommissionerUnited States Tax Court · 1994
- Estate of Robinson v. CommissionerUnited States Tax Court · 1993
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