Harris C. Crimmins, Ruth Crimmins, Ruben Oster, Donna Oster, Elmer Gullickson, Lucille Gullickson v. United States

BRIGHT, Circuit Judge.

Harris and Ruth Crimmins, Ruben and Donna Oster, and Elmer and Lucille Gul-lickson (taxpayers) brought this action in federal district court to secure refunds of federal income taxes for the 1973 tax year. The Government now appeals from the district court 1 judgment entered in favor of taxpayers. We affirm.

I. Background.

Taxpayers, who report their income taxes on a calendar year, cash basis, raise beef cattle in North Dakota. Because of adverse economic conditions in late 1973, the taxpayers oversold their normal years’ produce by entering into “Installment Deferred…