Legal Opinion

Horneff v. Commissioner

United States Tax Court

Decided April 16, 1968No. Docket No. 870-66Published

Petitioners sold their sole proprietorship business pursuant to an agreement dated Aug. 29, 1961, for a stated consideration of $ 50,000 and the assumption by the purchasers of all business liabilities which totaled $ 44,031.45. The purchasers made payments of $ 30,378.93 on these liabilities, all of which were due and payable in 1961. Petitioners also received cash of $ 3,625. Held, petitioners do not qualify for installment reporting of the gain on the sale of their…

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Petitioners sold their sole proprietorship business pursuant to an agreement dated Aug. 29, 1961, for a stated consideration of $ 50,000 and the assumption by the purchasers of all business liabilities which totaled $ 44,031.45. The purchasers made payments of $ 30,378.93 on these liabilities, all of which were due and payable in 1961. Petitioners also received cash of $ 3,625. Held, petitioners do not qualify for installment reporting of the gain on the sale of their business under sec. 453, I.R.C. 1954, because they received in excess of 30 percent of the selling price in the year of sale.…

1Opinion of the Court

J. Carl Horneff and Lula Horneff, Petitioner v. Commissioner of Internal Revenue, Respondent

Horneff v. Commissioner

Docket No. 870-66

United States Tax Court

50 T.C. 63; 1968 U.S. Tax Ct. LEXIS 145;

April 16, 1968, Filed

Decision will be entered under Rule 50.

Petitioners sold their sole proprietorship business pursuant to an agreement dated Aug. 29, 1961, for a stated consideration of $ 50,000 and the assumption by the purchasers of all business liabilities which totaled $ 44,031.45. The purchasers made payments of $ 30,378.93 on these liabilities, all of which were due and payable in 1961.…

Also in this document: Dissent.

2Cases cited18 opinions

  1. Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
  2. Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
  3. United States v. Cumberland Public Service Co.Supreme Court of the United States · 1950
  4. Burnet v. S. & L. Building Corp.Supreme Court of the United States · 1933
  5. Farber v. CommissionerUnited States Tax Court · 1961

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