Warren Jones Co. v. Commissioner
United States Tax Court
Petitioner, a cash basis taxpayer, sold an apartment building in 1968 for a total price of $ 153,000, receiving a downpayment of $ 20,000 and the contractual right to receive $ 1,000 per month plus 8-percent interest. The remaining balance was to be paid at the end of 15 years. During 1968 petitioner received $ 24,000, which included the downpayment, with $ 20,457.84 allocable to principal.
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Petitioner, a cash basis taxpayer, sold an apartment building in 1968 for a total price of $ 153,000, receiving a downpayment of $ 20,000 and the contractual right to receive $ 1,000 per month plus 8-percent interest. The remaining balance was to be paid at the end of 15 years. During 1968 petitioner received $ 24,000, which included the downpayment, with $ 20,457.84 allocable to principal. Its basis in the property at the time of sale was $ 61,913.34. On its Federal income tax return for 1968 petitioner did not report any gain from the sale, but elected, in the alternative, to use the…
1Opinion of the Court
Dawson, Judge.*
Respondent determined a deficiency in petitioner’s Federal income tax in the amount of $2,523.94 for the taxable year ended October 31,1968. The only issue to be decided is whether the petitioner, a cash basis taxpayer, realized income in 1968 upon the sale of appreciated property in return for a deferred-payment obligation under a real estate contract.
FINDINGS OF FACT
Some facts have been stipulated by the parties and are found accordingly.
Warren Jones Co. (herein called petitioner) was incorporated in the State of Washington in 1955. Its principal place of business was in…
2Cases cited15 opinions
- Albert Gersten, Myron P. Beck and Ann H. Beck, Milton Gersten and Mary Gersten v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1959
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- Earl A. Phillips and Dorothy M. Phillips v. William E. Frank, District Director of Internal RevenueCourt of Appeals for the Ninth Circuit · 1961
- Estate of Sam Marsack, Deceased, Betty Marsack, Administratrix, and Betty Marsack v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1961
- Western Oaks Bldg. Corp. v. CommissionerUnited States Tax Court · 1968
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3Cited by24 opinions
- McShain v. CommissionerUnited States Tax Court · 1979
- Warren Jones Company v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1975
- Estate of Wiggins v. CommissionerUnited States Tax Court · 1979
- Warren Jones Co. v. CommissionerUnited States Tax Court · 1977
- Estate of Silverman v. CommissionerUnited States Tax Court · 1992
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