Hibler v. Commissioner
United States Tax Court
On January 24, 1962, petitioner purchased all assets used in a fire and casualty insurance agency, including equipment, records, and expiration lists. In addition to a cash payment of $ 20,000, the bill of sale and a simultaneously executed contract provided that petitioner would pay to the seller or on his behalf 50 percent of the commission income received from the renewal business reflected on the seller's books at the time of the sale until $ 70,000 was received.
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On January 24, 1962, petitioner purchased all assets used in a fire and casualty insurance agency, including equipment, records, and expiration lists. In addition to a cash payment of $ 20,000, the bill of sale and a simultaneously executed contract provided that petitioner would pay to the seller or on his behalf 50 percent of the commission income received from the renewal business reflected on the seller's books at the time of the sale until $ 70,000 was received. Pursuant to the contract, petitioner paid the seller certain amounts in 1962 and 1963. Petitioner included such amounts in his…
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined a deficiency in income tax against petitioners for the years 1962 and 1963 in the amounts of $1,263.84 and $2,065.92, respectively.
The issues for decision are whether amounts paid as “commissions” by petitioner Larry D. Hibler to G. O. Walker, pursuant to an agreement for the purchase of certain properties of the Walker Insurance Agency, are includable in petitioner’s gross ’income and, if so, whether they are deductible as ordinary and necessary business expenses.
All of the facts have been stipulated and are adopted as our findings.
Larry D. Hibler…
2Cases cited20 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Helvering v. HorstSupreme Court of the United States · 1940
- Higgins v. SmithSupreme Court of the United States · 1940
- Sunshine Anthracite Coal Co. v. AdkinsSupreme Court of the United States · 1940
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3Cited by15 opinions
- Olin Bryant and Vanell Bryant v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1968
- Bryant v. CommissionerUnited States Tax Court · 1966
- Hodges v. CommissionerUnited States Tax Court · 1968
- Stone v. CommissionerUnited States Tax Court · 1968
- Ellison v. CommissionerUnited States Tax Court · 1983
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