W. W. Caruth, Jr. And First National Bank in Dallas, Trustees v. United States

TUTTLE, Circuit Judge:

This is an appeal by the Government from a judgment in the trial court, sitting without a jury, in a tax refund suit. The only issue between the parties is the proper tax treatment of sales of real estate partly for cash and partly for promissory notes. More specifically, the question before us is the method of valuing the promissory notes received at the sale. Because substantial cash payments were made in connection with the sale, no installment sale problem is involved in this case.

The facts are not in dispute. The plaintiffs are trustees of six trusts created for the…