Cox v. Commissioner
United States Tax Court
All of petitioners' corporate stock was redeemed pursuant to a contract providing for a cash downpayment, transfer of a one-half interest in a lease-option on real estate, and a deferred balance represented by a non-interest-bearing installment promissory note. The parties to the contract amended it 2 years later to provide for interest on the deferred balance.
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All of petitioners' corporate stock was redeemed pursuant to a contract providing for a cash downpayment, transfer of a one-half interest in a lease-option on real estate, and a deferred balance represented by a non-interest-bearing installment promissory note. The parties to the contract amended it 2 years later to provide for interest on the deferred balance. Held, for purposes of installment reporting under sec. 453(b), I.R.C. 1954, the "selling price" does not include interest imputed to deferred payments under sec. 483, I.R.C. 1954, and because the cash downpayment plus the value of the…
1Opinion of the Court
GoKfe, Judge:
The respondent determined a deficiency of $7,779.54 in petitioners’ Federal income tax for the taxable year 1968. The issues before the Court are: (1) Where section 483 1 is applied to impute in- ' terest to deferred payments received or receivable on account of a contract to sell stock, is the selling price for purposes of installment reporting under section 453(b) determined by subtracting total unstated interest from the stated selling price (selling price determined by negotiation of the parties to the contract); (2) where a casual sale of personalty fails to qualify for…
2Cases cited10 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Ruge v. Comm'rUnited States Tax Court · 1956
- William A. And Margaret K. Tombari v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- Miami Beach First National Bank v. United StatesCourt of Appeals for the Fifth Circuit · 1971
- Tombari v. CommissionerUnited States Tax Court · 1960
5 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Conklin v. CommissionerUnited States Tax Court · 1981
- Cox v. CommissionerUnited States Tax Court · 1974
- Hutchison v. CommissionerUnited States Tax Court · 1981
- Lombard v. CommissionerUnited States Tax Court · 1994