Eggerman Inv. Co. v. Commissioner
United States Board of Tax Appeals
The petitioner sold a parcel of real property, retaining title, and returned the profit on the installment basis. The buyer defaulted and in 1932 the petitioner reacquired possession and the unpaid installment obligations were satisfied for certain considerations.
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The petitioner sold a parcel of real property, retaining title, and returned the profit on the installment basis. The buyer defaulted and in 1932 the petitioner reacquired possession and the unpaid installment obligations were satisfied for certain considerations. Held, following Boca Ratone Co. v. Commissioner, 86 Fed.(2d) 9, that repossession did not result in taxable income to be computed in accordance with article 353, Regulations 77, but that the transaction between buyer and petitioner in 1932 constituted a satisfaction of the buyer's installment obligation at other than face value…
1Opinion of the Court
OPINION.
Disney:
This proceeding involves the redetermination of a deficiency of $4,981.03 in income tax for 1932. The question presented for decision is whether the respondent erred in taxing petitioner on the sum of $32,079.27 as profit realized on repossession of certain real property. The petitioner alleges in the alternative that the value of improvements made on the property by the purchaser does not constitute gain. Substantially all of the facts were stipulated.
In 1929 the petitioner, a Washington corporation, sold a lot 108 feet by 120 feet, improved by a two-story building of brick…
2Cited by8 opinions
- Walker v. ThomasCourt of Appeals for the Fifth Circuit · 1941
- Wilcox v. HenricksenDistrict Court, W.D. Washington · 1940
- Belcher v. CommissionerUnited States Tax Court · 1965
- Edward Barron Estate Co. v. United StatesDistrict Court, N.D. California · 1941
- Eggerman Inv. Co. v. CommissionerUnited States Board of Tax Appeals · 1937
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