Hammond v. Commissioner
United States Tax Court
Petitioner sold shares of stock for a total price of $ 965,000, receiving in the year of sale a cash payment of $ 74,000 from the vendee. In addition, he received, from a creditor who was also a party to the agreement of sale, cash in the amount of $ 280,000 and the cancellation of a prior indebtedness in the sum of $ 150,000, for which petitioner gave the creditor his notes for $ 430,000 payable only from the payments to be made by the vendee.
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Petitioner sold shares of stock for a total price of $ 965,000, receiving in the year of sale a cash payment of $ 74,000 from the vendee. In addition, he received, from a creditor who was also a party to the agreement of sale, cash in the amount of $ 280,000 and the cancellation of a prior indebtedness in the sum of $ 150,000, for which petitioner gave the creditor his notes for $ 430,000 payable only from the payments to be made by the vendee. Held, petitioner may not report the sale upon the installment basis since the initial payments exceeded 30 percent of the selling price. Sec. 44 (b),…
1Opinion of the Court
OPINION.
Artjndell, Judge:
The Commissioner determined income tax deficiencies for the years 1935 and 1936 in the amounts of $8,006.35 and $151,204.84, respectively, together with penalties for the respective . years of $400.32 and $7,560.24. Upon stipulation of the parties a decision was entered on October 2, 1940, that there was a deficiency in income tax of $2,561.85 and a penalty of $128.09 for the year 1935. We are presently concerned with the deficiency for 1936. The parties have stipulated that petitioner is not liable for the penalty, or any part of it, determined by respondent as to…
2Cases cited2 opinions
- Minnesota Tea Co. v. HelveringSupreme Court of the United States · 1938
- Burnet v. S. & L. Building Corp.Supreme Court of the United States · 1933
3Cited by23 opinions
- Robert B. Riss and Georgina Riss v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1966
- John H. Rickey and Lorraine C. Rickey v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1974
- Ludlow v. CommissionerUnited States Tax Court · 1961
- Rickey v. CommissionerUnited States Tax Court · 1970
- Yunker v. CommissionerUnited States Tax Court · 1956
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