Elverson Corp. v. Commissioner
United States Board of Tax Appeals
1. Petitioner owned certain notes maturing serially. In 1934 it entered into an agreement with its debtor wherein it granted the latter an extension in the time of payment of notes due in that year.
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1. Petitioner owned certain notes maturing serially. In 1934 it entered into an agreement with its debtor wherein it granted the latter an extension in the time of payment of notes due in that year. The debtor agreed to pay an additional amount, represented by income bonds, if no default should thereafter occur in the payment of principal or interest on all the notes, and also agreed to enhance the value of certain property pledged as collateral and, in the event of default, to surrender to its creditor all of its right, title and interest in such property. Default occurred and the pledged…
1Opinion of the Court
*629OPINION.
Mellott :
The principal question is, What was the amount of taxable income realized by petitioner during the year 1934 from the acquisition of 136,000 shares of the common stock of the Inquirer Co. of Delaware, hereinafter sometimes referred to as the pledged collateral? Petitioner contends that it is limited, as a matter of law, to the amount by which the face amount of the canceled notes ($3,488,750) exceeded the cost of such notes ($3,453,750) or $35,000; that the pledged collateral was acquired by it in payment of the outstanding purchase money notes; and that in accepting this…
2Cases cited14 opinions
- Gould v. GouldSupreme Court of the United States · 1917
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- United States v. MerriamSupreme Court of the United States · 1923
- Palmer v. CommissionerSupreme Court of the United States · 1937
- Avery v. CommissionerSupreme Court of the United States · 1934
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3Cited by12 opinions
- Estate of Beck v. Comm'rUnited States Tax Court · 1971
- Haag v. CommissionerUnited States Tax Court · 1963
- Ann Y. Oliver v. CommissionerUnited States Tax Court · 1949
- Atlas v. CommissionerUnited States Tax Court · 1945
- Bayonne Furniture Industries, Inc. v. CommissionerUnited States Tax Court · 1957
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