Milbrew, Inc. v. Commissioner
United States Tax Court
1. Martin and Ace Bernstein purchased a manufacturing plant in Juneau, Wisconsin, for $ 524,236. Approximately 20 months later the plant purportedly was sold to NVST, a partnership consisting of all of the Bernstein petitioners for $ 3,000,00. No cash was paid at the time of the "sale" and less than $ 140,000 (designated as interest) was paid by NVST with respect to the "purchase" over the ensuing 4 years.
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1. Martin and Ace Bernstein purchased a manufacturing plant in Juneau, Wisconsin, for $ 524,236. Approximately 20 months later the plant purportedly was sold to NVST, a partnership consisting of all of the Bernstein petitioners for $ 3,000,00. No cash was paid at the time of the "sale" and less than $ 140,000 (designated as interest) was paid by NVST with respect to the "purchase" over the ensuing 4 years. Held, no bona fide sale occurred and the depreciation deductions claimed by NVST, based upon its purported "cost" of $ 3,000,000, are disallowed. 2. Held, deductions for "interest" payments…
1Opinion of the Court
MILBREW, INC. AND AMBER LABORATORIES, A WHOLLY OWNED SUBSIDIARY; MARTIN BERNSTEIN AND RUTH BERNSTEIN; ESAU ACE BERNSTEIN AND EVA BERNSTEIN; NORMAN N. BERNSTEIN AND FREIDA D. BERNSTEIN; MELVIN BERNSTEIN AND SHARON BERNSTEIN; SHELDON BERNSTEIN AND ESTELLE BERNSTEIN; LEONARD D. BERNSTEIN; JUDITH R. BERNSTEIN; JAMES E. BERNSTEIN; DAVID B. BERNSTEIN; JODI L. BERNSTEIN; RICHARD N. BERNSTEIN; BRADLEY A. BERNSTEIN; LYNN C. BERNSTEIN; MARCY B. BERNSTEIN; MARY BERNSTEIN DIAMOND; HOWARD I. BERNSTEIN AND BARBARA BERNSTEIN; HOWARD I. BERNSTEIN; DAVID J. CUNNINGHAM AND MARY J. CUNNINGHAM, Petitioners v.…
2Cases cited38 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Higgins v. SmithSupreme Court of the United States · 1940
- Bixby v. CommissionerUnited States Tax Court · 1972
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Helvering v. F. & R. Lazarus & Co.Supreme Court of the United States · 1939
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