Berry v. Commissioner
United States Tax Court
The G.B.M. Co., a partnership comprised of petitioners and two other partners, sold the Raleigh Hotel located in Washington, D.C., on October 26, 1953, for a stated purchase price of $ 3,240,000. Sellers took back an 11-year note in the stated amount of $ 1,548,739.10. The contract recites the note is to be without interest, but includes a prepayment discount schedule.
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The G.B.M. Co., a partnership comprised of petitioners and two other partners, sold the Raleigh Hotel located in Washington, D.C., on October 26, 1953, for a stated purchase price of $ 3,240,000. Sellers took back an 11-year note in the stated amount of $ 1,548,739.10. The contract recites the note is to be without interest, but includes a prepayment discount schedule. Earlier offer to purchase made by the buyer contemplated a purchase price of $ 2,800,000 with the sellers taking back a note bearing interest at 4 1/2 percent for the deferred payments. The discount schedule included in both…
1Dissent
MejlkoNey,
dissenting: I respectfully dissent. I think the holding in the case of Raleigh Properties, Inc., supra, is clearly wrong. It is based upon a passing observation in Elliott Paint & Varnish Co., 44 B.T.A. 241, with respect to a principal and interest table set forth in the taxpayer’s brief wherein the author of the opinion commented that if the parties “had actually adopted such a table as a part of their agreement it might be pretty strong evidence in support of the petitioner’s contention.” Such a statement does not even rise to the dignity of dictum.
The reasoning and conclusion…
2Cases cited6 opinions
- Brown v. CommissionerUnited States Tax Court · 1961
- Daniel Bros. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1928
- Elliott Paint & Varnish Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Henrietta Mills v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1931
- Kingsford Co. v. CommissionerUnited States Tax Court · 1964
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