Wobbers, Inc. v. Commissioner
United States Board of Tax Appeals
1. A partnership sold real estate under contracts providing for payment in installments and reported profit therefrom on the installment basis. Thereafter the contracts were transferred to a corporation, along with other property, in exchange for all of the corporation's stock, and the corporation collected the remaining installment payments as they became due.
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1. A partnership sold real estate under contracts providing for payment in installments and reported profit therefrom on the installment basis. Thereafter the contracts were transferred to a corporation, along with other property, in exchange for all of the corporation's stock, and the corporation collected the remaining installment payments as they became due. Held that the corporation is taxable on the profit contained in each payment as computed for the predecessor partnership. Held, further, that commissions paid by the corporation based on a certain percentage of each payment collected…
1Opinion of the Court
*326OPINION.
Lansdon:
In his brief petitioners’ counsel contends that profit from the sale of the, Monterey theatres was erroneously reported by the partnership on the installment basis. He alleges that any profit arising from the transaction was taxable to the partnership in 1922, when the sale was made. We think such an issue is not properly before us. Profit from the sale was reported by the partnership on the installment basis and returns on such basis were accepted by the respondent. The corporation acquired the contract in exchange for stock and the issue here is whether the petitioners were…
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