Debough v. Comm'r
United States Tax Court
P sold his primary residence in 2006 pursuant to an installment sale agreement. The buyers' indebtedness was secured by the residence. Pursuant to I.R.C. sec. 121, P excluded $500,000 in gain on the sale. In 2009 the buyers defaulted on the deed and P reacquired the property.
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P sold his primary residence in 2006 pursuant to an installment sale agreement. The buyers' indebtedness was secured by the residence. Pursuant to I.R.C. sec. 121, P excluded $500,000 in gain on the sale. In 2009 the buyers defaulted on the deed and P reacquired the property. In a notice of deficiency to P, R determined that P was required to recognize long-term capital gain on the reacquisition of the property, including the $500,000 that P had previously excluded from gain. Held: P is required to recognize long-term capital gain on the reacquisition of the property, pursuant to I.R.C. sec.…
1Opinion of the Court
MARVIN E. DEBOUGH, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Debough v. Comm'r
Docket No. 22894-12.
United States Tax Court
142 T.C. 297; 2014 U.S. Tax Ct. LEXIS 18; 142 T.C. No. 17;
May 19, 2014, Filed
Decision will be entered for respondent.
P sold his primary residence in 2006 pursuant to an installment sale agreement. The buyers' indebtedness was secured by the residence. Pursuant to I.R.C. sec. 121, P excluded $500,000 in gain on the sale. In 2009 the buyers defaulted on the deed and P reacquired the property. In a notice of deficiency to P, R determined that P was required to…
2Cases cited12 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- United States v. SmithSupreme Court of the United States · 1991
- Andrus v. Glover Construction Co.Supreme Court of the United States · 1980
- Knudsen v. Comm'rUnited States Tax Court · 2008
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