Potter v. Commissioner
United States Tax Court
Petitioner was in the business of building and selling houses. Upon the sale of each house he would receive a small downpayment plus a note, secured by a first deed of trust, for the balance of the price. Each year petitioner included the face amount of all the notes in gross receipts and then deducted therefrom an arbitrary number of such notes which were designated "deferred contracts." All the deeds and notes were identical in all relevant respects.
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Petitioner was in the business of building and selling houses. Upon the sale of each house he would receive a small downpayment plus a note, secured by a first deed of trust, for the balance of the price. Each year petitioner included the face amount of all the notes in gross receipts and then deducted therefrom an arbitrary number of such notes which were designated "deferred contracts." All the deeds and notes were identical in all relevant respects. The respondent required, and petitioner agreed, that all of the notes should have been included in the computation of taxable income for the…
1Opinion of the Court
Train, Judge:
In these consolidated proceedings, respondent determined deficiencies in income tax of $328,563.55 in docket 3STo. 81795 for 1955 and of $22,668.56 and $28,307.22 in docket No. 86259 for 1956 and 1957, respectively. These deficiencies arise mainly from respondent’s inclusion in petitioners’ 1955 and 1956 taxable income of the outstanding balance of certain first trust deed notes which petitioners received in years prior to 1955, and in 1955 and 1956, but excluded by them from the computation of taxable income for such years.1 The parties hare stipulated that for the taxable year…
2Cases cited21 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Burnet v. LoganSupreme Court of the United States · 1931
- United States v. MitchellSupreme Court of the United States · 1926
- Graff Chevrolet Company v. Ellis Campbell, Jr., District Director of Internal RevenueCourt of Appeals for the Fifth Circuit · 1965
- Beacon Publishing Company, a Kansas Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1955
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3Cited by25 opinions
- FPL Group, Inc. v. CommissionerUnited States Tax Court · 2000
- Schuster's Express, Inc. v. CommissionerUnited States Tax Court · 1976
- Standard Oil Co. v. CommissionerUnited States Tax Court · 1981
- Dearborn Gage Co. v. CommissionerUnited States Tax Court · 1967
- Underhill v. CommissionerUnited States Tax Court · 1966
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