Commissioner of Revenue v. Chinchillo

In December, 1982, Edmund and Rosemarie Chinchillo (taxpayers), residents of Florida, sold real estate in Revere for $725,000. They took a note, secured by a mortgage on the real estate, in payment of all but $25,000 of the *220purchase price. The note provided that principal and interest on the outstanding debt would be payable in monthly installments over the following twelve years. The taxpayers realized capital gain from the sale. Because the sale was an “installment sale” under 26 U.S.C. § 453 (b) (1988), the taxpayers were entitled to and did elect, for Federal income tax purposes, to pay…