StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

331 U.S.1, 67 S. Ct.1047,91 L.Ed.1301,1947 U.S.3021 - Essay Example

Cite this document
Summary
However, only a few of them are identifiable just by the reference to a footnote number. Crane v. Commissioner is a good example of these cases. Tax scholars and academicians worldwide…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.8% of users find it useful
331 U.S.1, 67 S. Ct.1047,91 L.Ed.1301,1947 U.S.3021
Read Text Preview

Extract of sample "331 U.S.1, 67 S. Ct.1047,91 L.Ed.1301,1947 U.S.3021"

Crane v. Commissioner Case brief affiliation: Introduction There are many important tax cases that have been heard by theUnited States Supreme Court. However, only a few of them are identifiable just by the reference to a footnote number. Crane v. Commissioner is a good example of these cases. Tax scholars and academicians worldwide easily recognize the decision of this case simply by the reference to its footnote, 37. Crane has been an important case in tax history, and by far, its footnote 37 has been the most famous footnote.

This case is widely considered as a landmark Supreme Court decision in the tax world. It was the genesis of the current tax law which states that if a buyer assumes a nonrecourse debt upon the sale of a property, that assumption will be equivalent to receiving cash proceeds from the seller of the property and thus should be included in the calculation of tax. The following section gives a brief of Crane v. Commissioner. (Lau, 2007). Brief Fact SummaryThe petitioner’s husband died and because she was the sole beneficiary of the will, she had to inherit all the property he owned.

Among the property, there was an apartment he had built on mortgage. Therefore, the petitioner contracted with the mortgaging company to continue operating the property and remit the net rental to the company.FactsThe petitioner was the sole beneficiary of the will her husband had written. Her husband owned an apartment building and a lot which were subject to a mortgage. The apartment building was valued at 255,000 US dollars. The petitioner entered into an agreement with the mortgaging company to allow her continue operating the property.

The agreement allowed the petitioner to remit the net rentals to the mortgaging company. The apartment building did not have equity and this was because the outstanding balance on the mortgage and the interest in arrearage equaled the total appraisal value of the apartment. This petitioner owned the apartment for seven years and during this time, she claimed depreciation deductions. The petitioner later sold the apartment to a third party for 3000 US dollars which she paid 500 US dollars for expenses incurred during the selling process.

The third party also took the apartment subject to a mortgage. Because the petitioner believed that she had no basis on the property, she took zero depreciation, and thus, the sale of the property generated a gain of 2500 US dollars. The Commissioner of Internal Revenue determined that the petitioner had realized a net taxable gain of 23, 767.03 US dollars. The Commissioner’s theory was that the property was not equity but it was a physical property. The Tax Court held for the petition but the decision was later reversed by the Court of Appeals.

Later on, the Supreme Court granted certiorari. (Lau, 2007). IssueDid the original basis that was with the petitioner include the value of the property inherited in full, undiminished by the debt of the loan? Should the amount of the debt assumed by the third party be included in the petitioner’s calculation of the realized amount from the sale?HeldThe Chief Justice issued the opinion for the United States Supreme Court in affirming that the decision of lower court and he held that the proper basis should be the value of the property that was undiminished by the mortgage.

DissentChief Justice issued a dissenting opinion by arguing that the petitioner had acquired the right to property which was equal to that of equity and that she had sold the equity. The Court examined the ordinary meaning of property and realized that it included the physical thing which was subject to ownership. It found that the Congress did not intend for “equity” to mean “property”. (Lau, 2007). ReferencesLau, K. (2007). Crane v. Commissioner: An inquiry into some techniques of statutory interpretation.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“331 U.S.1, 67 S. Ct.1047,91 L.Ed.1301,1947 U.S.3021 Essay”, n.d.)
331 U.S.1, 67 S. Ct.1047,91 L.Ed.1301,1947 U.S.3021 Essay. Retrieved from https://studentshare.org/law/1681900-331-us1-67-s-ct104791-led13011947-us3021
(331 U.S.1, 67 S. Ct.1047,91 L.Ed.1301,1947 U.S.3021 Essay)
331 U.S.1, 67 S. Ct.1047,91 L.Ed.1301,1947 U.S.3021 Essay. https://studentshare.org/law/1681900-331-us1-67-s-ct104791-led13011947-us3021.
“331 U.S.1, 67 S. Ct.1047,91 L.Ed.1301,1947 U.S.3021 Essay”, n.d. https://studentshare.org/law/1681900-331-us1-67-s-ct104791-led13011947-us3021.
  • Cited: 0 times

CHECK THESE SAMPLES OF 331 U.S.1, 67 S. Ct.1047,91 L.Ed.1301,1947 U.S.3021

Financial Management

Your Name November 9, 2012 Name of of University Table of Contents Cover page………………………………………………………….... ??….... ... ... Table of Contents………………………………………………………….... hellip; 2 Part I ……………………………………………....
6 Pages (1500 words) Assignment

Comparing incomes: People with college degrees and people without college degrees

Income without college education Income with college education Code Income Code Income Code Income Code Income 31-1015 25,700 45-2041 20,870 11-2022 119,980 17-2041 84,140 31-1014 26,620 45-2090 21,080 11-3121 109,590 17-2061 103,980 35-2011 18,780 45-3011 36,900 13-1051 63,080 17-2071 91,810 35-3011 21,630 45-4011 28,600 13-1111 88,070 17-2072 95,250 35-3031 20,710 45-4020 35,140 13-2041 69,500 17-2081 85,140 35-3041 22,010 47-2011 55,830 13-2082 41,700 17-2121 96,140 35-9021 18,930 47-2021 50,370 15-1111 103,670 17-2141 84,770 35-9099 23,390 47-2031 44,520 15-1121 83,800 17-2161 107,140 37-2010 24,130 47-2042 38,450 15-1131 78,260 19-1022 73,250 37-2011 24,850 47-2061 34,490 15-1133 93,280 19-1041 71,400 37-2012 21,820 47-2071 40,170 15-1152 62,960 19-2011 102,550 37-3010 26,460 47-2141 38,590 15-2041 79,570 19-2012 114,150 37-3012 32,000 47-2142 36,630 17-1012 68,030 19-3011 99,480 37-3013 33,850 53-3021 38,470 17-2011 104,810 19-3041 80,820 37-3019 30,620 53-6021 21,540 17-2021 77,370 23-1011 130,880 Table 1....
3 Pages (750 words) Research Paper

Effects Of Attractiveness On Social Decision Making

The paper "Effects Of Attractiveness On Social Decision Making" aims to have a critical evaluation of the study conducted by Agthe.... The main objective of it's of the study includes the exploration of various aspects of the research methodology adopted by Agthe.... hellip; The researchers strictly emulated the ethical values have been determined for research conducting on all social and cultural issues....
4 Pages (1000 words) Article

The Design and History of Lockheed C-130 Hercules Aircraft

The flexible and multipurpose C-130 aircraft can accommodate a number of different sized cargo including military equipment, six wheeled vehicles, air force helicopters.... The design is made such that it should be able to serve a number of purposes.... To make it dual purpose the fitting of equipment is such that they are easily detachable....
9 Pages (2250 words) Essay

Technical Trading Analysis

The basis for analysis was single scrip in which the fund was expected to be interested in a major way both as a buyer and a seller.... The chosen scrip was Goldman Sacchs and its… The most critical assumption underlying the design of this trading system is that the fund is having a risk appetite that represents a judicious mix of risk assumption and risk aversion....
9 Pages (2250 words) Essay

Solving Equations

331) challenged students to examine an equation, x2 – x + 41, which purportedly yields prime numbers.... Hence, mathematicians ventured to uncover laws which govern prime number.... Euclid was the first to find evidence that there are an infinite number of prime numbers.... hellip; nwhile, Eratosthenes devised a method which bears his name, the sieve of Eratosthenes to find all prime numbers to a specified number (Knoebel, Laubenbacher, Lodder & Pengelley, 2007)....
4 Pages (1000 words) Assignment

Crane v. Commissioner of Internal Revenue Case

1301; 1947 u.... 1047; 91 l.... 1; 67 s.... LEXIS 3021; 47-1 U.... (P-H) 776; 1947-1 C.... 97; 1947 P.... ed.... ct.... Crane became the sole beneficiary of and the executrix of her husband's will....
2 Pages (500 words) Essay

Data Manipulation Using Minitab 18

We used secondary data to evaluate our study collected by U.... .... Bureau of Labor Statistics and we studied the salaries to workers in management level (U.... .... Bureau of Labor Statistics).... I… ose to study the data in order to understand the difference perks paid in US and evaluate the trend of top management salaries; with a sample N = 61. The Figure 1 shows the data is normally distributed with most managers getting an annual average salary of $100000 to $ 120000....
2 Pages (500 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us