Stiles v. Commissioner
United States Tax Court
Petitioner, a cash basis taxpayer, elected to report the gain from the redemption of his corporate stock on the installment method. Petitioner received 25 percent of the redemption price in cash. At the redeeming corporations' option, the remaining 75 percent was placed into a trust for his benefit.
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Petitioner, a cash basis taxpayer, elected to report the gain from the redemption of his corporate stock on the installment method. Petitioner received 25 percent of the redemption price in cash. At the redeeming corporations' option, the remaining 75 percent was placed into a trust for his benefit. The trust funds were payable to petitioner over several years and were to secure the redeeming corporations against any breaches reasonably anticipated of certain warranties and representations made by petitioner. Held: Petitioner did not constructively receive the trust funds or receive the…
1Opinion of the Court
OPINION
Tietjens, Judge:
Respondent determined a deficiency of $193,910.67 in petitioners’ Federal income taxes for 1972. The issues are whether the redemption of petitioners’ corporate stock qualifies as an installment sale under section 453,1 and, if so, whether petitioners can now change to a cost recovery method of accounting after electing to report under the installment method.
This case was fully stipulated pursuant to Rule 122, Tax Court Rules of Practice and Procedure. The stipulation of facts and attached exhibits are incorporated herein by reference.
When they filed their petition,…
2Cases cited35 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- Pacific National Co. v. WelchSupreme Court of the United States · 1938
- Chisholm v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1935
- H. O. Williams and Mrs. Ada L. Williams v. United StatesCourt of Appeals for the Fifth Circuit · 1955
- Brodie v. CommissionerUnited States Tax Court · 1942
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3Cited by20 opinions
- Roberts v. CommissionerUnited States Tax Court · 1978
- Griffith v. CommissionerUnited States Tax Court · 1980
- Porterfield v. CommissionerUnited States Tax Court · 1979
- Vaughn v. CommissionerUnited States Tax Court · 1983
- Roy v. Thomas Eloise F. Thomas v. United StatesCourt of Appeals for the Sixth Circuit · 2000
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