Scales v. Commissioner of Internal Revenue

This case has been heard and considered on the record and on the briefs and oral arguments of attorneys for the contending parties., It appears that the Tax Court of the United States held that the petitioning taxpayers, husband and wife, could not claim the right to report capital gain from the sale of a dairy farm and cattle on the installment basis in accordance with section 44(b) of the Internal Revenue Code, 26 U.S.C.A. § 44(b), for the reason that the taxpayers reported payments received on a lease-sale contract [held to be a sale] of a farm and dairy herd in 1943 as rent and not as…