R. A. Waldrep and Ruby Waldrep v. Commissioner of Internal Revenue

The taxpayers appeal from an order of the Tax Court, which denied them the right to report gain on the installment method upon the sale by them of a five acre tract of land on December 30, 1963.

The two issues presented to the Tax Court involved the question whether improvements which, by an option to sell executed several months previously the taxpayers had reserved the right to remove from the property in the event of a sale, were sold with the property when it was conveyed on December 30th. The second question is whether the Tax Court correctly held that the purchasers assumed the mortgages…