Kirschenmann v. Commissioner
United States Tax Court
A partnership sold real estate in which it had an adjusted basis of $ 98,509.36 for a total price of $ 432,000 and incurred selling expenses of $ 23,378.42. The purchaser assumed an existing mortgage of $ 160,000, paid cash of $ 80,011.54, and gave a note for the balance of $ 191,988.46. Held, the amount of the mortgage assumption in excess of the basis must be included in the payments received in the year of sale, sec. 1.453-4(c), Income Tax Regs., and the selling expenses…
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A partnership sold real estate in which it had an adjusted basis of $ 98,509.36 for a total price of $ 432,000 and incurred selling expenses of $ 23,378.42. The purchaser assumed an existing mortgage of $ 160,000, paid cash of $ 80,011.54, and gave a note for the balance of $ 191,988.46. Held, the amount of the mortgage assumption in excess of the basis must be included in the payments received in the year of sale, sec. 1.453-4(c), Income Tax Regs., and the selling expenses may not be added to the basis; therefore, petitioners, members of the partnership, do not meet the requirements of sec.…
1Opinion of the Court
OPINION
Featheeston, Judge:
Respondent determined deficiencies and over-assessments in petitioners’ Federal income tax as follows:
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The issues for decision are as follows:(1) Whether, for the purpose of determining a seller’s qualifications for the installment sale provisions of section 453,2 the amount by which an assumed mortgage exceeds the seller’s basis must be included in the payments received in the year of sale; and(2) Whether, for purposes of determining petitioners’ qualifications for the installment sale provisions of section 453, the seller’s selling costs must be offset…
2Cases cited17 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
- Commissioner v. WilcoxSupreme Court of the United States · 1946
- Burnet v. S. & L. Building Corp.Supreme Court of the United States · 1933
12 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Voight v. CommissionerUnited States Tax Court · 1977
- Hunt v. CommissionerUnited States Tax Court · 1983
- Walter Kirschenmann v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1973
- Bostedt v. CommissionerUnited States Tax Court · 1978
- Turner v. CommissionerUnited States Tax Court · 1974
5 more not listed; retrieve them via the Exa API.