Hilton v. Commissioner
United States Tax Court
Where the purchaser of a $ 175,000 note received as a part of the entire transaction a payment of $ 75,000 on the note, arranged for by the seller, and the purchaser intended to buy only $ 100,000 of the note, held, there was in substance a payment of $ 75,000 on the note by the maker to the seller; held, further, there was a bona fide sale of a capital asset to the extent of $ 100,000; held, further, a prior settlement agreement by the Commissioner of Internal Revenue and…
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Where the purchaser of a $ 175,000 note received as a part of the entire transaction a payment of $ 75,000 on the note, arranged for by the seller, and the purchaser intended to buy only $ 100,000 of the note, held, there was in substance a payment of $ 75,000 on the note by the maker to the seller; held, further, there was a bona fide sale of a capital asset to the extent of $ 100,000; held, further, a prior settlement agreement by the Commissioner of Internal Revenue and the taxpayer providing for the treatment of future payments on the note as ordinary income does not estop petitioners…
1Opinion of the Court
OPINION.
Black, Judge:
The question in this proceeding is whether the income realized on the disposition of a $175,000 note in 1944 is taxable as ordinary income or as a capital gain. Petitioners contend that Hilton made a bona fide sale of the note and, therefore, the transaction is within the purview of section 117 of the Internal [Revenue Code, the pertinent provisions of which are printed in the margin.1 In support of their contention petitioners cite Stanley D. Beard, 4 T. C. 756; W. P. Holly, 2 T. C. 980, and Clara M. Tully Trust, 1 T. C. 611.
The respondent contends that the amount…
2Cases cited7 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Higgins v. SmithSupreme Court of the United States · 1940
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- Minnesota Tea Co. v. HelveringSupreme Court of the United States · 1938
- Hobby v. CommissionerUnited States Tax Court · 1943
2 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Metra Chem Corp. v. CommissionerUnited States Tax Court · 1987
- American Home Products Corp. v. United StatesUnited States Court of Claims · 1979
- Hilton v. CommissionerUnited States Tax Court · 1949
- Metra Chem Corp. v. CommissionerUnited States Tax Court · 1987