Rose v. Commissioner
United States Tax Court
Sec. 483 was enacted on Feb. 26, 1964, and provided for the imputation of interest to certain deferred payments received upon the sale or exchange of property. On Jan. 1, 1964, petitioners sold a motel property on the installment basis with payments to be made over 15 years. The terms of the sale made no provision for interest.
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Sec. 483 was enacted on Feb. 26, 1964, and provided for the imputation of interest to certain deferred payments received upon the sale or exchange of property. On Jan. 1, 1964, petitioners sold a motel property on the installment basis with payments to be made over 15 years. The terms of the sale made no provision for interest. Respondent sought to tax (as interest income) parts of the deferred payments received by petitioners in 1965 and 1966. Held, the application of sec. 483 to a sale completed less than 2 months prior to its enactment was not violative of the due process clause of the…
1Opinion of the Court
Forrester, Judge-.
Respondent bas determined deficiencies in income tax for tbe calendar years 1965 and 1966 in tbe respective amounts of $1,121.38 and $826.13.
The issues involved are (1) whether tbe application of section 483 of tbe Internal Revenue Code of 19541 to an installment sale consummated before the enactment of that section violates the due process clause of tbe fifth amendment of tbe Constitution, and (2) whether, with respect to that installment sale, respondent is estopped from applying section 483 to installment payments received in 1965 and 1966 where respondent bad audited and…
2Cases cited25 opinions
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- Milliken v. United StatesSupreme Court of the United States · 1931
- Untermyer v. AndersonSupreme Court of the United States · 1928
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