Reaver v. Commissioner
United States Tax Court
Petitioners sold a 35-acre tract of land, on which they lived and conducted an airport operation, to a church in 1958 for a cash downpayment of $ 1,000 and notes totaling $ 181,600, payable in monthly and annual installments, without interest, over a period of years.
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Petitioners sold a 35-acre tract of land, on which they lived and conducted an airport operation, to a church in 1958 for a cash downpayment of $ 1,000 and notes totaling $ 181,600, payable in monthly and annual installments, without interest, over a period of years. Petitioners received $ 2,600 on the purchase price during 1958, which they included in gross receipts from their business on their original income tax return for 1958 which, due to reasonable cause, was not filed until October 1959. After auditing petitioners' returns for 1958 and 1959, respondent determined that the entire gain…
1Opinion of the Court
DreNNEN, Judge:
Respondent determined a deficiency in petitioners’ income tax for the year 1958 in the amount of $40,199.98, and in additions to tax under sections 6653 (a) and 6654(a), I.R.C. 1954,1 in the respective amounts of $2,010 and $31.23.
The primary issue for decision is whether petitioners are entitled to return gain and pay tax on their gain from the sale of a 35-acre tract of land in 1958 on the installment method. If it is held that petitioners are not to employ the installment method of returning taxable gain from the sale, we must determine whether two notes received by…
2Cases cited19 opinions
- Pacific National Co. v. WelchSupreme Court of the United States · 1938
- Thrift v. CommissionerUnited States Tax Court · 1950
- Ruben v. CommissionerUnited States Tax Court · 1960
- Bayley v. CommissionerUnited States Tax Court · 1960
- S. Nicholas Jacobs and Dolores I. Jacobs v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
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3Cited by97 opinions
- Harper v. CommissionerUnited States Tax Court · 1970
- United States v. Leona M. Helmsley, Joseph v. Licari and Frank J. Turco, Leona M. HelmsleyCourt of Appeals for the Second Circuit · 1991
- Durovic v. CommissionerUnited States Tax Court · 1970
- Pollack v. CommissionerUnited States Tax Court · 1966
- Hynes v. CommissionerUnited States Tax Court · 1980
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