Jerpe v. Commissioner
United States Board of Tax Appeals
Where the petitioner made a sale of certain stock for a cash payment and five further payments to be made annually, and elected to report income on the installment basis; and thereafter the petitioner-creditor in 1931 agreed to cancel two of the payments, and did cancel them; held, that the percentage of the 1938 payment returnable as income under section 44, Revenue Act of 1928, must be adjusted to the reduced sale price, the petitioner having neither claimed nor taken any…
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Where the petitioner made a sale of certain stock for a cash payment and five further payments to be made annually, and elected to report income on the installment basis; and thereafter the petitioner-creditor in 1931 agreed to cancel two of the payments, and did cancel them; held, that the percentage of the 1938 payment returnable as income under section 44, Revenue Act of 1928, must be adjusted to the reduced sale price, the petitioner having neither claimed nor taken any deduction for a loss in the year of the reduction.
1Opinion of the Court
*201OPINION.
KeRn:
The single issue is the amount of income taxable in 1938 under the installment plan elected by the taxpayer, after the reduction in a prior year of the amount of the purchase price agreed on in the contract sale of August 3, 1929. The relevant provisions of *202the statutes are set out in the margin.1 Petitioner contends that this-contract was an agreement to sell and not a contract of sale; in other words, that it was executory in character. Resting on this premise, he then argues that the sale price was altered and reduced by the sum of $100,000, involved in petitioner’s…
2Cases cited1 opinion
- Bowers v. Kerbaugh-Empire Co.Supreme Court of the United States · 1926
3Cited by5 opinions
- Cox v. CommissionerUnited States Tax Court · 1974
- Cox v. CommissionerUnited States Tax Court · 1974
- Hutchison v. CommissionerUnited States Tax Court · 1981
- Jerpe v. CommissionerUnited States Board of Tax Appeals · 1941
- Kutsunai v. CommissionerUnited States Tax Court · 1983