Legal Opinion

Dessauer v. Commissioner

United States Tax Court

Decided February 24, 1970No. Docket No. 1766-68Published

Subchapter S corporations of which taxpayer was a majority stockholder made a "disposition" of installment obligations to an unrelated finance company. Deficiencies were determined for 1964 and 1965 and additional deficiencies were proposed in an amendment to answer.

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Subchapter S corporations of which taxpayer was a majority stockholder made a "disposition" of installment obligations to an unrelated finance company. Deficiencies were determined for 1964 and 1965 and additional deficiencies were proposed in an amendment to answer. Held, basis was properly determined by the Commissioner under sec. 453(d)(2), I.R.C. 1954, and gain or loss on the disposition is to be calculated from the difference between amount of cash received from finance company and basis. Sec. 453(d), I.R.C. 1954.

1Opinion of the Court

Ralph Dessauer and Rebecca Dessauer, Petitioners v. Commissioner of Internal Revenue, Respondent

Dessauer v. Commissioner

Docket No. 1766-68

United States Tax Court

54 T.C. 327; 1970 U.S. Tax Ct. LEXIS 205;

February 24, 1970, Filed

Decision will be entered under Rule 50.

Subchapter S corporations of which taxpayer was a majority stockholder made a "disposition" of installment obligations to an unrelated finance company. Deficiencies were determined for 1964 and 1965 and additional deficiencies were proposed in an amendment to answer. Held, basis was properly determined by the Commissioner under sec.…

2Cases cited3 opinions

  1. United States v. DavisSupreme Court of the United States · 1962
  2. Hegra Note Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1967
  3. Dessauer v. CommissionerUnited States Tax Court · 1970

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