Roland and Marie Womack - Page 14

                                       - 14 -                                         
          Commissioner v. P.G. Lake, Inc., 356 U.S. 260 (1958); (2) a                 
          situation where no sale or exchange occurred (such as a                     
          condemnation or taking), citing Commissioner v. Gillette Motor              
          Transp., Inc., 364 U.S. 130 (1960); (3) a situation where a                 
          portion of the sale price of a debt instrument represents                   
          original issue discount, citing United States v. Midland-Ross               
          Corp., 381 U.S. 54 (1965); and (4) the sale of a right to receive           
          payment in return for a taxpayer’s personal services (petitioners           
          provided no specific citation for this situation).                          
               Petitioners contend that their situation does not fit within           
          those specific situations, and therefore the doctrine does not              
          apply to them.  Respondent, on the other hand, contends that the            
          doctrine is a general principle that would apply to situations              
          where the property in question involved “a claim or right to                
          ordinary income.”  Respondent, contrary to petitioners, contends            
          that Arkansas Best did not obviate or limit that principle (as              
          espoused in the above-referenced pre-Arkansas Best Supreme Court            
               The Arkansas Best opinion is a major point of contention in            
          the parties’ arguments.  Petitioners contend that the Supreme               
          Court, in attempting to clarify the interpretation of the term              
          “capital asset” that had evolved from the holding in Corn Prods.            
          Refining Co. v. Commissioner, 350 U.S. 46 (1955), decided that              
          the five categories of property excluded from capital gains                 

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  Next

Last modified: May 25, 2011