Wilson v. Commissioner
United States Tax Court
In connection with a sale of assets to Wil-Tex Oil Corporation on January 1, 1947, Wilson agreed to reimburse the corporation for $ 42,104.87, the difference between the value of a note which the corporation assumed from Wilson and the basis of the property. The account payable was recognized as valid on the books of Wilson and the corporation, and was a valid indebtedness.
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In connection with a sale of assets to Wil-Tex Oil Corporation on January 1, 1947, Wilson agreed to reimburse the corporation for $ 42,104.87, the difference between the value of a note which the corporation assumed from Wilson and the basis of the property. The account payable was recognized as valid on the books of Wilson and the corporation, and was a valid indebtedness. The indebtedness was reduced and the balance of $ 33,950 was canceled by Wil-Tex Oil Corporation as of January 31, 1948. Held, that upon the cancellation of the indebtedness in 1948, petitioners thereby realized income of…
1Opinion of the Court
OPINION.
Black, Judge:
There are three questions presented as follows: Did the petitioners erroneously include $33,950 in gross community income in 1948? Did petitioners erroneously fail to claim $8,154.87 as a part of their community adjusted basis in the stock of Wil-Tex Oil Corporation upon computing their gain from the sale of said stock in 1948 ? If the $33,950 is properly includible in petitioners’ community income for 1948, should the $33,950 be treated as additional long-term capital gain received on the sale of petitioners’ stock in Wil-Tex Oil Corporation rather than as ordinary…
2Cases cited2 opinions
- Commissioner v. JacobsonSupreme Court of the United States · 1949
- Helvering v. National Contracting Co.Court of Appeals for the Eighth Circuit · 1934
3Cited by2 opinions
- Wilson v. CommissionerUnited States Tax Court · 1957
- Wilson v. CommissionerUnited States Tax Court · 1953