Applegate v. Commissioner
United States Tax Court
During 1984, P, as a landlord farmer, sold grain crop share rentals for $ 83,280.79 and entered into contracts for future payments, the price of which was fixed at the market value 1 year after the execution of the contracts, subject to P's right to accelerate the time for establishing the price and for payment.
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During 1984, P, as a landlord farmer, sold grain crop share rentals for $ 83,280.79 and entered into contracts for future payments, the price of which was fixed at the market value 1 year after the execution of the contracts, subject to P's right to accelerate the time for establishing the price and for payment. Held, the contracts did not constitute an evidence of indebtedness "payable on demand" within the meaning of sec. 453(f)(4)(A), I.R.C., and therefore did not constitute a "payment" under sec. 453(f)(3) with the result that the transactions qualify as an installment sale under sec.…
1Opinion of the Court
OPINION
TANNENWALD, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax for the taxable year 1984 in the^amount of $240,955. After concessions, the issues for decision are whether the sales of grain received pursuant to crop share leases qualified for reporting on the installment method under section 4531 and whether the payments received at the time of execution of the contracts for such sales of grain constitute ordinary income or capital gain.
All of the facts have been stipulated, and the stipulation of facts and attached exhibits are incorporated herein by reference.
2Cases cited7 opinions
- Service Bolt & Nut Co. Profit Sharing Trust v. CommissionerUnited States Tax Court · 1982
- Clyde G. Tatum and Veta Rae Tatum v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1968
- Tatum v. CommissionerUnited States Tax Court · 1966
- Ben F. Parmer and Mildred Helen Parmer v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1972
- Strong v. CommissionerUnited States Tax Court · 1988
2 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Calvin P. Applegate and Irma Applegate v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1992
- Estate of Silverman v. CommissionerUnited States Tax Court · 1992
- Applegate v. CommissionerUnited States Tax Court · 1990
- Estate of Silverman v. CommissionerUnited States Tax Court · 1992