Keith v. Commissioner
United States Tax Court
Prior to and during the years in issue, GIA, a proprietorship owned by P wife, sold residential real property by means of contracts for deed. Under these agreements, the buyers obtained possession; assumed responsibility for taxes, insurance, and maintenance; and became obligated to make monthly payments, with interest, of the purchase price.
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Prior to and during the years in issue, GIA, a proprietorship owned by P wife, sold residential real property by means of contracts for deed. Under these agreements, the buyers obtained possession; assumed responsibility for taxes, insurance, and maintenance; and became obligated to make monthly payments, with interest, of the purchase price. A warranty deed would be delivered to the buyers by GIA only upon full payment, and any default by the buyers prior thereto would render the contracts null and void, with GIA retaining all amounts paid as liquidated damages. In accounting for these…
1Opinion of the Court
OPINION
Nims, Judge:
Respondent determined the following deficiencies and penalties with respect to petitioners’ Federal income taxes for the taxable years 1993, 1994, and 1995:
Taxable year Income tax deficiency Penalty sec. 6662(a)
1993 $74,925.00 $14,985
1994 127,304.00 25,461
1995 106,261.54 21,252
After concessions, the issues remaining for decision are: (1) The proper method of accounting for, and timing of recognition of gain attributable to, sales of property by means of contracts for deed; and (2) the reduction of net operating loss carryovers from years preceding the years in issue to…
2Cases cited27 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- United States v. National Bank of CommerceSupreme Court of the United States · 1985
- Thor Power Tool Co. v. CommissionerSupreme Court of the United States · 1979
- Grodt & McKay Realty, Inc. v. CommissionerUnited States Tax Court · 1981
- Lucas v. Kansas City Structural Steel Co.Supreme Court of the United States · 1930
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3Cited by42 opinions
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