Commissioner v. Segall
United States Court of Appeals for the Sixth Circuit
114 F.2d 706 (1940)
Relevant factsFree
Two companies agreed in October 1931 to merge, believing the transaction would be a non-taxable reorganization, and prepared the necessary documents that year, but deliberately scheduled the actual closing — the transfer of title and possession — for January 2, 1932. The IRS (defendant) determined the transaction was a taxable sale occurring in 1932; the Board of Tax Appeals found the transaction wasn't a sale at all, and the IRS appealed.
IssueFree
Whether a sale takes place for tax purposes upon the seller's transfer of title and possession of the asset.