Horneff v. Commissioner
United States Tax Court
Petitioners sold their sole proprietorship business pursuant to an agreement dated Aug. 29, 1961, for a stated consideration of $ 50,000 and the assumption by the purchasers of all business liabilities which totaled $ 44,031.45. The purchasers made payments of $ 30,378.93 on these liabilities, all of which were due and payable in 1961. Petitioners also received cash of $ 3,625. Held, petitioners do not qualify for installment reporting of the gain on the sale of their…
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Petitioners sold their sole proprietorship business pursuant to an agreement dated Aug. 29, 1961, for a stated consideration of $ 50,000 and the assumption by the purchasers of all business liabilities which totaled $ 44,031.45. The purchasers made payments of $ 30,378.93 on these liabilities, all of which were due and payable in 1961. Petitioners also received cash of $ 3,625. Held, petitioners do not qualify for installment reporting of the gain on the sale of their business under sec. 453, I.R.C. 1954, because they received in excess of 30 percent of the selling price in the year of sale.…
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined a deficiency in the income tax of petitioners for the year 1961 in the amount of $1,960.50.
The only issue for decision is whether the petitioners, who sold their sole proprietorship business in 1961, received payments in excess of 30 percent of the selling price during that year so that they were precluded from using the installment method provided by section 453 1 in reporting income from the sale. Petitioners have conceded the disallowance of depreciation claimed in the amount of $2,278.65.
All of the facts have been stipulated and are incorporated…
2Cases cited10 opinions
- Burnet v. S. & L. Building Corp.Supreme Court of the United States · 1933
- Wagegro Corp. v. CommissionerUnited States Board of Tax Appeals · 1938
- Hammond v. CommissionerUnited States Tax Court · 1942
- Cisler v. CommissionerUnited States Tax Court · 1962
- McWilliams v. CommissionerUnited States Board of Tax Appeals · 1929
5 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- R. Paul Sprague and Mary G. Sprague v. United StatesCourt of Appeals for the Tenth Circuit · 1980
- Bostedt v. CommissionerUnited States Tax Court · 1978
- Bostedt v. CommissionerUnited States Tax Court · 1978
- Horneff v. CommissionerUnited States Tax Court · 1968