Dessauer v. Commissioner
United States Tax Court
Subchapter S corporations of which taxpayer was a majority stockholder made a "disposition" of installment obligations to an unrelated finance company. Deficiencies were determined for 1964 and 1965 and additional deficiencies were proposed in an amendment to answer.
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Subchapter S corporations of which taxpayer was a majority stockholder made a "disposition" of installment obligations to an unrelated finance company. Deficiencies were determined for 1964 and 1965 and additional deficiencies were proposed in an amendment to answer. Held, basis was properly determined by the Commissioner under sec. 453(d)(2), I.R.C. 1954, and gain or loss on the disposition is to be calculated from the difference between amount of cash received from finance company and basis. Sec. 453(d), I.R.C. 1954.
1Opinion of the Court
OPINION
The only -issue for our consideration is the amount of gain or loss, if any, to be reported by petitioners by virtue of the transactions with the finance company. This issue will be resolved by the provisions of section 458 (d), I.R.C. 1954,1 whose pertinent parts read as follows:
SEC. 453(d). Gain or Loss on Disposition op Installment Obligations.-—(1) General rule. — If an installment obligation is satisfied at other than its face value or distributed, -transmitted, sold, or otherwise disposed of, gain or loss shall result to the extent of the difference between the basis of the…
2Cases cited2 opinions
- United States v. DavisSupreme Court of the United States · 1962
- Hegra Note Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1967
3Cited by5 opinions
- Smith v. CommissionerUnited States Tax Court · 1971
- Ralph Dessauer and Rebecca Dessauer v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1971
- Smith v. Comm'rUnited States Tax Court · 1971
- Dessauer v. CommissionerUnited States Tax Court · 1970
- Smith v. Comm'rUnited States Tax Court · 1971