Holmes v. Commissioner
United States Tax Court
Held, a third-party note, assigned and guaranteed by the purchaser and received by the seller in the year of sale, is not an "evidence of indebtedness of the purchaser," and the fair market value of the note must be taken into consideration in determining the profit to be reported in the year of sale under the installment sale provisions contained in sec. 453, I.R.C. 1954.
1Opinion of the Court
Carl F. Holmes and Kathleen E. Holmes, Petitioners v. Commissioner of Internal Revenue, Respondent
Holmes v. Commissioner
Docket No. 677-70SC
United States Tax Court
55 T.C. 53; 1970 U.S. Tax Ct. LEXIS 50;
October 19, 1970, Filed
Decision will be entered for the respondent.
Held, a third-party note, assigned and guaranteed by the purchaser and received by the seller in the year of sale, is not an "evidence of indebtedness of the purchaser," and the fair market value of the note must be taken into consideration in determining the profit to be reported in the year of sale under the installment sale…
2Cases cited5 opinions
- Freeman v. CommissionerUnited States Tax Court · 1961
- Elmore v. CommissionerUnited States Board of Tax Appeals · 1929
- Georgia-Florida Land Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Walnut Realty Trust v. CommissionerUnited States Board of Tax Appeals · 1931
- Holmes v. CommissionerUnited States Tax Court · 1970