Rohrbough, Inc. v. Commissioner of Revenue

In 1971, George I. Rohrbough (Rohrbough) sold real estate in Roston at a substantial capital gain. The sales price was to be paid in instalments over a period of six years, pursuant to notes, and the transaction qualified under § 453 of the Internal Revenue Code (I.R.C.) (26 U.S.C. § 453 [1976]) for treatment as an instalment sale. Rohrbough elected to report the gain as an instalment sale for Federal income tax purposes, but, for State income tax purposes (G. L. c. 62, § 63 [e]), he elected to report the gain on his 1971 individual tax return and to pay the tax on the entire gain. In…