Scherf v. Commissioner
United States Tax Court
A partnership sold its assets in return for cash and notes under circumstances whereby it could have elected to treat the transaction as an installment sale under section 44, Internal Revenue Code. On the partnership return, the capital gain from the sale was reported on the completed transaction basis.
Read the full summary
A partnership sold its assets in return for cash and notes under circumstances whereby it could have elected to treat the transaction as an installment sale under section 44, Internal Revenue Code. On the partnership return, the capital gain from the sale was reported on the completed transaction basis. Held, petitioner, a partner, was chargeable with his distributive share of the gain thus reported by the partnership on the completed transaction basis and could not elect to report his distributive share of the gain under the installment method. Sections 182, 183.
1Opinion of the Court
OPINION.
Raum, Judge:
The Commissioner determined a deficiency in the amount of $4,169.17 in the income tax of the petitioner for the calendar year 1947. Petitioner was a member of a partnership that realized a gain upon sale of its assets in 1947. In filing its return the partnership did not report that gain on the installment basis under, section 44 (b)1 of the Internal Revenue Code, as it might have elected to do; rather, it reported the entire gain on a completed transaction basis. The only question is whether petitioner, as an individual partner, may in these circumstances elect to have…
2Cases cited3 opinions
- Heiner v. MellonSupreme Court of the United States · 1938
- Commissioner v. LamontCourt of Appeals for the Second Circuit · 1946
- Truman v. United StatesDistrict Court, N.D. Illinois · 1933
3Cited by14 opinions
- Resnik v. CommissionerUnited States Tax Court · 1976
- Bentex Oil Corp. v. CommissionerUnited States Tax Court · 1953
- Rothenberg v. CommissionerUnited States Tax Court · 1967
- Townend v. CommissionerUnited States Tax Court · 1956
- Ammann v. CommissionerUnited States Tax Court · 1954
9 more not listed; retrieve them via the Exa API.