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 Example 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).   The 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. The 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 t he 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

McBride Financial Services Essay Example | Topics and Well Written Essays - 2000 words

McBride Financial Services - Essay Example In short, the problems of the firm are integral since the management organ of the firm has adopted customs that are not in line with the international standards of corporate governance. The firm is experiencing many challenges at the start up stage since it is a private and small firm. Unlike many brokerage firms, the management of the institution has a limited experience in the brokerage industry, and this can result to a downfall of the industry. The chief executive officer is one of the key challenges to the achievement of the firm since he is the owner of the firm and, as a result, there will be a tendency of putting his own interests first. McBride being the chief executive officer and the chairman of the board will have a significant influence on the decision made by the board of directors as well as the management team (Fayol, 1949). This is because being the head of the two organs he can refuse a decision that is not favourable to his own interest. Commercial analysts have cr iticized the organization for its inability to comply with the rules of investment and borrowing funds from beltway investment. Beltway investment on the other hand, emphasizes that; all the firms that seek any assistance from it must comply with all the requirements of investment, failure to which the application of the assistance will be null and void. The management of McBride investment is willing to obey and follow all the requirements of Beltway Investments. The management strategy of beltway investment seems to have some doubtful professional standards though McBride seriously opposes the perception. Beltway investment grants firm the freedom to manage on their own style. It emphasizes on the universal standards of corporate governance, and any equity based compensation plans in line with the achievement of the firm’s objectives. There should be no any form of discrimination. Even though McBride is seeking to fully comply with beltway investment he insists that his dec ision on the directors and the management