Joe Kelly Butler, Inc. v. Commissioner
United States Tax Court
Petitioner made a bulk sale of assets which included personal property and real property. The real property was encumbered by a mortgage that exceeded the basis of petitioner in the real property. The mortgage was assumed by the purchaser as part of the consideration. Held, for installment reporting purposes, the mortgage in excess of the aggregate basis of all the assets sold is a payment in the year of sale and the sale qualifies for the installment method of reporting.
1Opinion of the Court
OPINION
GOFFE, Judge:
The Commissioner determined deficiencies in petitioner’s Federal income tax as follows:
Docket No. Year Deficiency
13069-79 1974 $459,559.02
1975 41,505.09
1977 77,067.77 33799-84
1978 1,039.95
After concessions, the sole issue remaining for decision is whether petitioner is entitled to use the installment method to report gain attributable to the sale of real property sold as part of a bulk sale of assets.
This case was submitted fully stipulated under Rule 122.1 The stipulation of facts and stipulated exhibits are incorporated herein by this reference.
Joe Kelly Butler, Inc.…
2Cases cited16 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- General Utilities & Operating Co. v. HelveringSupreme Court of the United States · 1935
- Helvering v. WoodSupreme Court of the United States · 1940
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3Cited by2 opinions
- Joe Kelly Butler, Inc. v. CommissionerUnited States Tax Court · 1986
- Rashti Constr. Co. v. CommissionerUnited States Tax Court · 1988