Irwin v. Commissioner
United States Tax Court
Petitioners were partners in an insurance agency business. In 1959 they sold their partnership interests to a single buyer who assumed all of the partnership liabilities. Each petitioner-partner received an installment note on which no payments were due during the year of sale plus a small amount of cash which was less than 30 percent of the selling price. However, the buyer paid substantially all of the assumed liabilities in the year of sale.
Read the full summary
Petitioners were partners in an insurance agency business. In 1959 they sold their partnership interests to a single buyer who assumed all of the partnership liabilities. Each petitioner-partner received an installment note on which no payments were due during the year of sale plus a small amount of cash which was less than 30 percent of the selling price. However, the buyer paid substantially all of the assumed liabilities in the year of sale. Respondent determined that the installment method could not be used by petitioners in 1959 to report the gains. Held: Petitioners do not qualify for…
1Opinion of the Court
Hoyt, Judge:
Respondent determined the following deficiencies in petitioners’ 1959 income tases:
[[Image here]]
The sole issiie for decision is whether upon a sale of their partnership business the petitioner-partners received payments in excess of 30 percent of the selling price in 1959, the year of sale, and are, therefore, precluded from using the installment method to report the income from the sale. The issues in docket No. 1544-63 with respect to the basis of the farm held by the partnership of Vanston, Hailey and Joy and the useful life of the rental building have been resolved by…
2Cases cited13 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- National Carbide Corp. v. CommissionerSupreme Court of the United States · 1949
- Stonecrest Corp. v. CommissionerUnited States Tax Court · 1955
- Wagegro Corp. v. CommissionerUnited States Board of Tax Appeals · 1938
- Forest G. Smith, Jr., and Rose Mary Smith v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
8 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Pollack v. CommissionerUnited States Tax Court · 1966
- Bostedt v. CommissionerUnited States Tax Court · 1978
- Sallies v. CommissionerUnited States Tax Court · 1984
- Horneff v. CommissionerUnited States Tax Court · 1968
- Joe Kelly Butler, Inc. v. CommissionerUnited States Tax Court · 1986
7 more not listed; retrieve them via the Exa API.