Sheraton Plaza Co. v. Commissioner
United States Tax Court
Cancellation by petitioner's sole stockholder of debt previously created by unrelated tenant and assumed by petitioner's agreement with its stockholder when petitioner's property was acquired from original debtor, held, on facts, not to result in income taxable to petitioner.
1Opinion of the Court
OPINION.
OppeR, Judge:
In dealing with tbe vexed problem of the receipt of income from cancellation of indebtedness, it is important to consider not only the circumstances under which tbe debt was forgiven, United States v. Kirby Lumber Co., 284 U.S. 1 (1931); Helvering v. Amer. Chicle Co., 291 U.S. 426 (1934); Helvering v. Amer. Dental Co., 318 U.S. 322 (1943); Commissioner v. Jacobson, 336 U.S. 28 (1949), but also what gave rise to the debt in the first place, so that tbe entire transaction can be viewed as a whole. See, e.g., Bowers v. Kerbaugh-Empire Co., 271 U.S. 170 (1926); Hirsch v.…
2Cases cited18 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Commissioner v. JacobsonSupreme Court of the United States · 1949
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Bowers v. Kerbaugh-Empire Co.Supreme Court of the United States · 1926
- Magruder v. SuppleeSupreme Court of the United States · 1942
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3Cited by1 opinion
- Sheraton Plaza Co. v. CommissionerUnited States Tax Court · 1963