Giffin v. Commissioner
United States Board of Tax Appeals
INSTALLMENT SALE OF REAL ESTATE. - Where real estate was sold by one not a dealer and the profit reported on the installment method, the expenses incident to the sale serve to reduce the selling price in determining the profit to be realized, thus being spread over the same period as the installment payments, and are not deductible in full in the year of sale.
1Opinion of the Court
*1245OPINION.
Arundell:
In addition to the facts stipulated by the parties, they also stipulated that:
The sole question to be decided by the Board is whether the commission of $4,250 and other selling expenses amounting to $101.15 paid by petitioner in 1925 is [are?] deductible in the year paid or whether the said commission and other selling expenses aforesaid should be prorated over the life of the installments.
The question here presented arises under section 212(d) of the Revenue Act of 1926, which gave legal sanction to the installment sales method of reporting income and which ivas made…
2Cited by28 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Munson v. McGinnesCourt of Appeals for the Third Circuit · 1960
- Firemen's Ins. Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Black v. CommissionerUnited States Tax Court · 1973
- Kirschenmann v. CommissionerUnited States Tax Court · 1972
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