John E. Reed v. Commissioner of Internal Revenue

FLOYD R. GIBSON, Senior Circuit Judge.

John E. Reed, appeals from the United States Tax Court’s decision sustaining the Commissioner’s determination of a $71,-412.68 deficiency in Reed’s 1973 federal income tax. On appeal to this court, Reed, a cash basis taxpayer, claims the Tax Court erred as a matter of law in ruling that he recognized a long-term capital gain from the sale of 80 shares of stock in 1973, when the stock purchaser deposited the stock sales proceeds into an escrow account, rather than in 1974, when the escrowee disbursed the sales proceeds to Reed. Reed urges that the escrow…