Sallies v. Commissioner
United States Tax Court
Petitioners sold real estate to a buyer under an installment sale contract. At the closing of this sale, the buyer paid off petitioners' mortgage note and their unsecured promissory note. Held: The buyer's payment of liabilities of petitioners constitutes a payment in the year of sale.
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Petitioners sold real estate to a buyer under an installment sale contract. At the closing of this sale, the buyer paid off petitioners' mortgage note and their unsecured promissory note. Held: The buyer's payment of liabilities of petitioners constitutes a payment in the year of sale. Petitioners received payments in the year of sale totaling more than 30 percent of the selling price and thus do not qualify for the use of the installment method of reporting under sec. 453(b), I.R.C. 1954, as in effect for the year in issue.
1Opinion of the Court
Chabot, Judge:
Respondent determined a deficiency in Federal individual income tax against petitioners for 1976 in the amount of $33,940. After a concession by petitioners, the issue for decision1 is whether petitioners are entitled under section 4532 to use the installment method of reporting gain from the sale of certain real estate.
FINDINGS OF FACT
Some of the facts have been stipulated; the stipulation and the stipulated exhibits are incorporated herein by this reference.
When the petition in the instant case was filed, petitioners Robert C. Sallies (hereinafter sometimes referred to as…
2Cases cited15 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Burnet v. S. & L. Building Corp.Supreme Court of the United States · 1933
- Buttke v. CommissionerUnited States Tax Court · 1979
- Leroy and Leona Buttke v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1980
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3Cited by6 opinions
- Darby v. CommissionerUnited States Tax Court · 1991
- Owen v. CommissionerUnited States Tax Court · 1987
- Darby v. CommissionerUnited States Tax Court · 1991
- Ehlert v. CommissionerUnited States Tax Court · 1985
- Rashti Constr. Co. v. CommissionerUnited States Tax Court · 1988
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