Conners v. Commissioner
United States Tax Court
Petitioners sold certain real property which was subdivided and improved by the purchaser. The purchaser defaulted on its promissory note to petitioners and petitioners reacquired a portion of the property with improvements. Held, petitioners do not have to recognize gain under sec. 1038(a), I.R.C. 1954, on the reacquisition. Held, further, petitioners must recognize gain under sec. 1038(b) with respect to payments received from the purchaser prior to the reacquisition.
1Opinion of the Court
Ray R. and Mary G. Conners, Petitioners v. Commissioner of Internal Revenue, Respondent
Conners v. Commissioner
Docket No. 41651-85
United States Tax Court
88 T.C. 541; 1987 U.S. Tax Ct. LEXIS 29; 88 T.C. No. 27;
March 5, 1987. March 5, 1987, Filed
Petitioners sold certain real property which was subdivided and improved by the purchaser. The purchaser defaulted on its promissory note to petitioners and petitioners reacquired a portion of the property with improvements. Held, petitioners do not have to recognize gain under sec. 1038(a), I.R.C. 1954, on the reacquisition. Held, further, petitioners…
2Cases cited2 opinions
- Conners v. CommissionerUnited States Tax Court · 1987
- Smith v. CommissionerUnited States Tax Court · 1972