Burrell Groves, Inc. v. Commissioner of Internal Revenue

JONES, Circuit Judge.

In 1943, Burrell Groves, Inc., a corporation, herein called the taxpayer, sold a citrus grove and equipment to Eugene J. Burrell and Alice W. Burrell, husband and wife, who owned all of taxpayer’s capital stock. The properties sold had a cost basis of $136,311.50. The sale price was $187,590.00. The purchasers paid taxpayer $5,340.00 in cash upon closing and gave their note to taxpayer bearing four per cent interest and payable in equal annual installments over the fifteen years of 1944 to 1958, inclusive. Payment of the note was secured by a mortgage on the grove…