Ward v. Commissioner
United States Tax Court
1. During the taxable year petitioners sold their interest in a partnership through a receiver for cash. The entire sale price was paid by the buyers with no strings attached, but receipt by petitioners of $ 17,000 of the sale proceeds from the receiver was deferred until subsequent taxable year because of an attachment unrelated to the sale. Petitioners were on the cash basis.
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1. During the taxable year petitioners sold their interest in a partnership through a receiver for cash. The entire sale price was paid by the buyers with no strings attached, but receipt by petitioners of $ 17,000 of the sale proceeds from the receiver was deferred until subsequent taxable year because of an attachment unrelated to the sale. Petitioners were on the cash basis. Held, even though receipt of a portion of sale proceeds is deferred to a subsequent taxable year by reason of an attachment by a creditor of the seller, the gain is "realized" in the taxable year within the meaning of…
1Opinion of the Court
OPINION.
Black, Judge:
The five issues presented for our decision are set forth in our preliminary statement. Each issue will be taken up in its order.
First Issue.
The principal issue in this proceeding involves part of the proceeds from petitioners’ sale of their partnership interest. The sale took place on February 8, 1946, conducted by a court receiver who had been appointed to dissolve or sell the partnership. Petitioners realized a total sale price of $211,111.26. Since the basis for their interest sold was $140,745.64, the gain from the sale was $70,365.62. The buyers paid the full…
2Cases cited3 opinions
- Flood v. United StatesCourt of Appeals for the First Circuit · 1943
- Coke v. CommissionerUnited States Tax Court · 1951
- Commissioner of Internal Revenue v. CokeCourt of Appeals for the Fifth Circuit · 1953
3Cited by62 opinions
- Brannen v. CommissionerUnited States Tax Court · 1982
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Goodwin v. CommissionerUnited States Tax Court · 1980
- Dwight A. Ward v. Commissioner of Internal Revenue, Hanna P. Ward v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- Koons v. CommissionerUnited States Tax Court · 1961
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