Humphrey v. Commissioner
United States Board of Tax Appeals
1. Nonnegotiable notes due in a future year received in connection with the sale by a partner of his partnership interest had no fair market value and are not to be included in income in the year of receipt. 2. Interest of a partner in a partnership owned for more than two years held to be capital asset and the gain upon the sale thereof taxable at capital gain rates.
1Opinion of the Court
*281OPINION.
Arundell:
This proceeding is to test the correctness of respondent’s determination of a deficiency in income tax in the amount of $12,749.93 for the calendar year 1929. The deficiency arises primarily from respondent’s action in determining the profits on the sale by petitioner of his interest in a partnership. Petitioner alleges as error the increase of his net income in the sum of $70,000, representing the face value of three nonnegotiable notes received in connection with the sale, and the failure of the respondent to tax the profit from the sale as a capital gain. The third error…
2Cases cited1 opinion
- Blodgett v. SilbermanSupreme Court of the United States · 1928
3Cited by28 opinions
- Hatch's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1952
- Lowe v. CommissionerUnited States Tax Court · 1965
- United States v. ShapiroCourt of Appeals for the Eighth Circuit · 1949
- Schlemmer v. United StatesCourt of Appeals for the Second Circuit · 1938
- Cowden v. CommissionerUnited States Tax Court · 1959
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