Kingsford Co. v. Commissioner
United States Tax Court
1. Petitioner's predecessor sold a hydroelectric plant for a minimum sales price of $ 1,522,000, payable after a cash downpayment of $ 100,000, over a 12-year period at the rate of 3.75 mills per kilowatt hour of power generated by the plant, but subject to a yearly minimum of 31,600,000 kw.-hrs., or, stated in dollars, $ 118,500. The minimum purchase price was subjected to upward adjustments, depending upon the amount of electrical energy generated over the 12-year period.
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1. Petitioner's predecessor sold a hydroelectric plant for a minimum sales price of $ 1,522,000, payable after a cash downpayment of $ 100,000, over a 12-year period at the rate of 3.75 mills per kilowatt hour of power generated by the plant, but subject to a yearly minimum of 31,600,000 kw.-hrs., or, stated in dollars, $ 118,500. The minimum purchase price was subjected to upward adjustments, depending upon the amount of electrical energy generated over the 12-year period. In specifying the minimum purchase price as $ 1,522,000, the contract stated "including both principal and interest on…
1Opinion of the Court
OPINION
The first question for our consideration is whether the purchase price of the property was $1,522,000 as petitioner contends or was $1,253,280 as respondent contends with $268,720 representing interest on deferred payments. The question must turn upon what was the actual agreement of the parties. Was it an agreement for Wisconsin to pay Kingsford so much as purchase price and the balance as interest ? This must be determined from all of the evidence, documentary and otherwise. The evidence as a whole is that the amount stated in the contract is all principal, not the aggregate of…
2Cases cited12 opinions
- Mills v. CommissionerUnited States Tax Court · 1948
- Pacific Coast Biscuit Co. v. CommissionerUnited States Board of Tax Appeals · 1935
- Brown v. CommissionerUnited States Tax Court · 1961
- Bishop v. CommissionerUnited States Tax Court · 1956
- Alabama-Georgia Syrup Co. v. CommissionerUnited States Tax Court · 1961
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3Cited by8 opinions
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