Commons v. Commissioner
United States Tax Court
1. Petitioners for several years incorrectly reported income in full from real estate installment sales in the year the last installment was paid.
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1. Petitioners for several years incorrectly reported income in full from real estate installment sales in the year the last installment was paid. Accordingly, petitioners reported in their 1948 return income in full from four sales made in the prior years 1942, 1945, and 1946. Held, that this income, properly attributable to prior years and received in those prior years either in cash or its equivalent, is not taxable in 1948, and in spite of consistent use petitioners' method is improper. 2. In 1948, petitioners sold real estate to be paid for in installments yielding a total profit of $…
1Opinion of the Court
OPINION.
Black, Judge:
In 1948, petitioners sold real estate for a total profit of $20,165.05, receiving down payments in the amount of $1,050 and the balance to be paid in installments. Petitioners omitted these sales from their income because of the erroneous belief that they could wait to report them until the year when the final installment had been paid to them. Petitioners had in prior years made the same error without the Commissioner’s challenging their method. The Commissioner has included in petitioners’ income one-half of the total profit from these sales made during the year as…
2Cases cited4 opinions
- Pacific National Co. v. WelchSupreme Court of the United States · 1938
- Thrift v. CommissionerUnited States Tax Court · 1950
- Commissioner of Internal Revenue v. Union Pac. R. Co.Court of Appeals for the Second Circuit · 1936
- Cedar Valley Distillery, Inc. v. CommissionerUnited States Tax Court · 1951
3Cited by23 opinions
- Bayley v. CommissionerUnited States Tax Court · 1960
- Farber v. CommissionerUnited States Tax Court · 1961
- Mamula v. CommissionerUnited States Tax Court · 1964
- Hughes v. CommissionerUnited States Tax Court · 1954
- Wood v. CommissionerCourt of Appeals for the Fifth Circuit · 1957
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