Lustgarten v. Commissioner
United States Tax Court
Petitioner sold stock to his son under an installment contract. At the same time, the son executed a note and an escrow agreement. The combination of the three agreements forced the son to sell the stock and invest the proceeds in other securities which were then placed in escrow.
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Petitioner sold stock to his son under an installment contract. At the same time, the son executed a note and an escrow agreement. The combination of the three agreements forced the son to sell the stock and invest the proceeds in other securities which were then placed in escrow. Held, petitioner caused his son to act as his agent in selling the stock and in reinvesting the proceeds and hence is not entitled to make use of the installment method of reporting income from the sale to the son.
1Opinion of the Court
Sterrett, Judge:
Respondent, on July 23, 1976, issued a statutory notice in which he determined a deficiency in petitioners’ Federal income tax for the calendar year 1971 in the amount of $346,075. After concessions by the parties, the sole issue remaining for our determination is whether petitioners are entitled to report the gain resulting from the sale of 42,000 shares of Cooper Laboratories, Inc., common stock on the installment basis under section 453,1.R.C. 1954.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts, supplemental stipulation of…
2Cases cited7 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Rushing v. CommissionerUnited States Tax Court · 1969
- W. B. Rushing v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
- Bob Hindes and Wife, Dorothy Lee v. United StatesCourt of Appeals for the Fifth Circuit · 1964
- Pozzi v. CommissionerUnited States Tax Court · 1967
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3Cited by20 opinions
- Goodman v. CommissionerUnited States Tax Court · 1980
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