Munkers v. State Tax Commission

Edward H. Howell, Judge.

Plaintiffs appeal from an income tax deficiency assessed for 1962. The facts have been stipulated.

In March, 1953, plaintiff Lela K. Munkers acquired certain farm properties located in Oregon. Plaintiff’s original cost basis in these properties was $30,000; however, due to adjustments this cost basis was fully absorbed, that is, reduced to zero, by February 19, 1962. At that time plaintiff and her husband entered into a “Sale Agreement” for the sale of the property. During 1962, 1963, 1964 and 1965 plaintiff received no payments of principal on account of the 1962…