Stonecrest Corp. v. Commissioner
United States Tax Court
Installment Sales of Mortgaged Real Property Under Sec. 44 (b), I. R. C. 1939. -- Under terms of agreement of sale, buyer from petitioners of real property that had a mortgage on it did not assume the mortgage or take the property subject to the mortgage within the meaning of respondent's regulation relating to the determination of the percentage of taxable income to be returned on the installment basis.
1Opinion of the Court
OPINION.
Tietjens, Judge:
Where property is sold on the installment plan the seller may return as income from the sale in any taxable year the proportion of the installment payments actually received in that year which the gross profit on the sale bears to the total contract price. Sec. 44, I. R. C. 1939.1 This provision, enacted in the Revenue Act of 1926,2 relieved a seller from having to pay an income tax in the year of sale based on the full amount of anticipated profits when in fact only a small portion of the sales price had been received. Commissioner v. South Texas Lumber Co., 333 U. S.…
2Cases cited3 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Crane v. CommissionerSupreme Court of the United States · 1947
- Burnet v. S. & L. Building Corp.Supreme Court of the United States · 1933
3Cited by38 opinions
- Republic Petroleum Corp. v. United StatesCourt of Appeals for the Fifth Circuit · 1980
- Estate of Lamberth v. CommissionerUnited States Tax Court · 1958
- Goodman v. CommissionerUnited States Tax Court · 1980
- Voight v. CommissionerUnited States Tax Court · 1977
- Tutor-Saliba Corp. v. CommissionerUnited States Tax Court · 2000
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