United States v. George Wood and Cora M. Wood
This text of 352 F.2d 522 (United States v. George Wood and Cora M. Wood) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
In directing a verdict for the taxpayers, the district court recognized that it was deciding directly contrary to the opinion and decision of the Sixth Circuit in Key Homes, Inc. v. Commissioner of Internal Revenue, 6 Cir. 1959, 271 F.2d 280. George Wood owned 50% of the stock of Bama Homes. The district court reasoned that the present controversy is not controlled by Commissioner of Internal Revenue v. Hansen, 1959, 360 U.S. 446, 79 S.Ct. 1270, 3 L.Ed.2d 1360, because Bama Homes had no contractual guaranty obligation to the financial institution. We do not agree.
As we read the contract (record pp. 122-124), Bama Homes agreed to make a “deposit” of “additional security” with the financial institution in consideration of the granting of a mortgage loan to the purchaser-mortgagor. We agree with the decision of the Sixth Circuit in Key Homes, Inc. v. Commissioner of Internal Revenue, supra.
The judgment of the district court is therefore
Reversed.
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Cite This Page — Counsel Stack
352 F.2d 522, 16 A.F.T.R.2d (RIA) 5931, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-george-wood-and-cora-m-wood-ca5-1965.