Bostedt v. Commissioner
United States Tax Court
Petitioners sold their motel business. As part of the transaction, the purchaser paid petitioners' sales commission liability.
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Petitioners sold their motel business. As part of the transaction, the purchaser paid petitioners' sales commission liability. Held, the assumption by the purchaser of the seller's sales commission liability is treated as a payment in the year of sale for purposes of the 30-percent limitation of sec. 453(b)(2)(A). Wagegro Corp. v. Commissioner, 38 B.T.A. 1225 (1938), followed; Irwin v. Commissioner, 390 F.2d 91 (5th Cir. 1968), revg. 45 T.C. 544 (1966); United States v. Marshall, 357 F.2d 294 (9th Cir. 1966); Horneff v. Commissioner, 50 T.C. 63 (1968), vacated and remanded by unpublished…
1Opinion of the Court
Irwin, Judge:
The Commissioner determined a deficiency in petitioners’ Federal income taxes for the calendar year 1971 in the amount of $8,492. Due to concessions by petitioners, the only issue remaining for decision is whether petitioners’ sale of their motel business qualifies for the installment method of reporting under section 453.1
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts, along with attached exhibits, are incorporated herein by this reference.
The petitioners, Earl C. and Joy E. Bostedt, husband and wife, resided in Santa Cruz, Calif., at the time…
2Cases cited15 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Wagegro Corp. v. CommissionerUnited States Board of Tax Appeals · 1938
- Hammond v. CommissionerUnited States Tax Court · 1942
- Robert B. Riss and Georgina Riss v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1966
- Cisler v. CommissionerUnited States Tax Court · 1962
10 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Sallies v. CommissionerUnited States Tax Court · 1984
- Joe Kelly Butler, Inc. v. CommissionerUnited States Tax Court · 1986
- Bostedt v. CommissionerUnited States Tax Court · 1978
- Cox v. United StatesDistrict Court, W.D. Tennessee · 1984
- Ehlert v. CommissionerUnited States Tax Court · 1985
3 more not listed; retrieve them via the Exa API.