Edwards v. Commissioner
United States Tax Court
In 1962, petitioners purchased stock and notes of a corporation for $ 75,000. The purchase contract allocated $ 5,000 to the stock and $ 70,000 to the notes. Held, amounts received by petitioners from the corporation on the principal of the notes did not constitute amounts received in exchange for such notes under sec. 1232(a), I.R.C. 1954.
1ConcurrenceWithev, J.
I concur in the result reached by the majority in this case but cannot agree that assignment of Ovid’s evidences of indebtedness to the taxpayer-petitioners as distinguished from Birmingham Steel can be construed as a contribution to the capital of the latter. It seems to me a necessary conclusion that this result must be arrived at on the basis of the fact that the evidences of indebtedness both in the hands of Ovid and in the hands of petitioners would constitute valid and subsisting evidences of indebtedness. That contrary to the situation where Ovid had made an investment (loan) in the…
2Cases cited4 opinions
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
- Nat Holt and Blanche Holt, Husband and Wife v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- Bellamy v. CommissionerUnited States Tax Court · 1965
- Hill v. CommissionerUnited States Tax Court · 1967