Graham Spence v. Secretary of the Treasury

Mr. Justice Pérez Pimentel

delivered the opinion of the Court.

The Secretary of the Treasury notified appellee Robert Graham Spence of an income tax deficiency for the taxable year 1948 in the amount of $3,927.45, including interest until December 1952. The deficiency arose when the Secretary of the Treasury determined that the full capital gain realized by Graham in the sale of certain real property in 1948 was taxable that year.

There is no controversy as to the amount of the gain obtained by the taxpayer from that sale. However, treating the transaction as an installment of deferred payment…