Hughes v. Commissioner
United States Board of Tax Appeals
1. Payments made under terms of a sales contract by the purchaser of corporation stocks and bonds to the seller to reimburse the latter for Federal income taxes incurred on his profits in the transaction are taxable income to the seller in the year received, and not the year of the sale. 2. On the evidence, the basis used by the respondent in determining the gain from the sale of certain stock is approved.
1Opinion of the Court
*1251OPINION.
Tuener:
The first assignment of error is based on the inclusion in 1928 income of the sum of $207,383.85, received by the petitioner in 1929 as a reimbursement by the United Public Service Co. of income taxes paid by the petitioner on profits realized from the sale to that company of stock in the Hughes Electric Co. and the *1252Knife Kiver Coal Mining Co. In his notice of deficiency, the respondent explained his action in this respect as follows:(1) While it appears that the amount received representing a reimbursement of income taxes due and payable on the profit from the sale of stock…
2Cases cited1 opinion
- London Guarantee & Accident Co. v. Industrial Accident CommissionSupreme Court of the United States · 1929
3Cited by4 opinions
- Almours Secur., Inc. v. CommissionerUnited States Board of Tax Appeals · 1936
- Edna Bennett Hirst v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1978
- Edna Bennett Hirst v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1978
- Hughes v. CommissionerUnited States Board of Tax Appeals · 1935