Waldrep v. Commissioner
United States Tax Court
Petitioners, owners and mortgagors of two adjacent tracts of land sold one of the tracts to Motels, Inc., which, as part of the consideration for the transfer, executed a promissory note secured by a mortgage on the land to the original mortgagees in the amount of petitioners' obligation to them. Held, the improvements on the land were not sold to Motels, Inc.Held, further, Motels, Inc., "assumed" petitioners' mortgages on the land.
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Petitioners, owners and mortgagors of two adjacent tracts of land sold one of the tracts to Motels, Inc., which, as part of the consideration for the transfer, executed a promissory note secured by a mortgage on the land to the original mortgagees in the amount of petitioners' obligation to them. Held, the improvements on the land were not sold to Motels, Inc.Held, further, Motels, Inc., "assumed" petitioners' mortgages on the land. Therefore, petitioners are not entitled to report their gain on the installment method because they received over 30 percent of the selling price in the year of…
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined deficiencies of $395.54 and $30,068.40 in the petitioners’ Federal income taxes for the years 1962 and 1963, respectively.
The first issue is whether petitioners sold the improvements on a 5-acre tract along with the land, resulting in a gain of $115,892.50, as reported by them, rather than a gain of $134,593.63, as determined by respondent. The second, and principal, issue is whether petitioners received 80 percent or less of the selling price in the year of sale, entitling them to report their gain on the installment method under section 453, I.R.C.…
2Cases cited7 opinions
- Burnet v. S. & L. Building Corp.Supreme Court of the United States · 1933
- Upchurch v. WestSupreme Court of Alabama · 1937
- Duke v. KilpatrickSupreme Court of Alabama · 1935
- Burns v. AustinSupreme Court of Alabama · 1932
- Roberts v. CapleAlabama Court of Appeals · 1913
2 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- Pritchett v. CommissionerUnited States Tax Court · 1974
- Goodman v. CommissionerUnited States Tax Court · 1980
- Voight v. CommissionerUnited States Tax Court · 1977
- R. A. Waldrep and Ruby Waldrep v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1970
- Professional Equities v. CommissionerUnited States Tax Court · 1987
16 more not listed; retrieve them via the Exa API.