Journal Co. v. Commissioner of Internal Revenue, 7819.
| Decision Date | 26 January 1942 |
| Docket Number | No. 7819.,7819. |
| Citation | 125 F.2d 349 |
| Parties | JOURNAL CO. v. COMMISSIONER OF INTERNAL REVENUE. |
| Court | U.S. Court of Appeals — Seventh Circuit |
Edmund B. Shea and C. F. Mikkelson, both of Milwaukee, Wis., for petitioner.
Samuel O. Clark, Jr., Asst. Atty. Gen., J. Louis Monarch, and Lee A. Jackson, Sp. Assts. to Atty. Gen., and J. E. Garvey and J. P. Wenchel, Bureau of Internal Revenue, both of Washington, D. C., for respondent.
Before EVANS, MAJOR, and MINTON, Circuit Judges.
Petitioner is a Wisconsin corporation against whom respondent assessed a $40,940.28 deficiency tax for 1936. On an appeal to the Board of Tax Appeals, the assessment was sustained. 44 B.T.A. 460.
The controversy is over an item of $112,564.97, which was paid by petitioner in connection with petitioner's purchase of the late Mr. Nieman's stock in the Journal Company. The parties differ as to whether this payment was an interest payment, or a part of the purchase price.
Mr. Nieman died testate, owning a large block of valuable stock of the Journal Company. By his will, this stock was given to testamentary trustees, by him named, with plenary power to dispose of the same. Those trustees entered into a contract with petitioner, which contract was subsequently approved by the court, whereby 1,100 shares were sold to the Journal Company and Faye McBeath, the latter, a legatee named in the Nieman will. Six hundred and fifty shares of the stock were sold to the Journal Company, and four hundred and fifty to Faye McBeath. The agreed price was $3,500 per share.
The sale, the approval of its terms by the court, the transfer of the stock, the payment of the money and the distribution of the same, all occurred in the same year, to-wit, 1936.
The will of Mr. Nieman provided:
Provisions of the agreement for the purchase and sale of the stock, which are necessary to, or bear upon, the proper disposition of this case, are herewith set forth:
To continue reading
Request your trial
-
Woodward v. United States
...a certain amount in wages over a certain period. Downey Co. v. Commissioner, 8 Cir., 1949, 172 F.2d 810. But cf., Journal Co. v. Commissioner, 7 Cir., 1942, 125 F.2d 349 (indebtedness contingent on court approval of a sale); Arthur R. Jones Syndicate v. Commissioner, 7 Cir., 1927, 23 F.2d 8......
-
Halle v. C.I.R., 95-1740
...that the interest began to accrue, and (3) the payor's liability to the payee is primary and direct. See, e.g., Journal Co. v. Commissioner, 125 F.2d 349, 350-51 (7th Cir.1942); Dunlap v. Commissioner, 74 T.C. 1377, 1424, 1980 WL 4489 (1980), rev'd on other grounds, 670 F.2d 785 (8th Cir.19......
-
Media Space, Inc. v. Comm'r of Internal Revenue, 25696–08.
...the interest began to accrue, and (3) the payor's liability to the payee is primary and direct. * * *See, e.g., Journal Co. v. Commissioner, 125 F.2d 349, 350–351 (7th Cir.1942), revg. 44 B.T.A. 460 (1941); Midkiff v. Commissioner, supra at 739–745; Dunlap v. Commissioner, supra at 1424; Ka......
-
Midkiff v. Comm'r of Internal Revenue
...1, 1971, coincided with the date of the 1971 purchase agreement, creating at least a conditional debt. * * * In Journal Co. v. Commissioner, 125 F.2d 349 (7th Cir. 1942), revg. 44 B.T.A. 460 (1941), another case relied on by petitioners, a deduction was allowed for interest that accrued fro......
-
Deductibility of fees paid to postpone property settlement.
...the deduction, the amount of the debt is fixed and the payor's liability to the payee is primary and direct. (See, e.g., Journal Co., 125 F2d 349, 350-351 (7th Cir. 1942).) Finally, indebtedness may be imposed on a property's purchaser when the benefits and burdens of ownership shift before......