Conners v. Commissioner
United States Tax Court
Petitioners sold certain real property which was subdivided and improved by the purchaser. The purchaser defaulted on its promissory note to petitioners and petitioners reacquired a portion of the property with improvements. Held, petitioners do not have to recognize gain under sec. 1038(a), I.R.C. 1954, on the reacquisition. Held, further, petitioners must recognize gain under sec. 1038(b) with respect to payments received from the purchaser prior to the reacquisition.
1Opinion of the Court
OPINION
WRIGHT, Judge:
This case is before the Court on petitioners’ motion for summary judgment upon the section 1038(a) issue. The issue for decision is whether petitioners are entitled to nonrecognition of gain pursuant to section 1038(a) with respect to real property which they reacquired in 1981.
Respondent determined a deficiency in petitioners’ Federal income tax for calendar year 1981 in the amount of $443,100 and an addition to tax under section 6653(a)1 in the amount of $22,155. A portion of this deficiency was based on respondent’s determination that petitioners had ordinary income of…
2Cases cited1 opinion
- Smith v. CommissionerUnited States Tax Court · 1972
3Cited by8 opinions
- Avery v. CommissionerUnited States Tax Court · 1993
- Hovhannissian v. CommissionerUnited States Tax Court · 1997
- Marvin DeBough v. Douglas Shulman, Comm. IRSCourt of Appeals for the Eighth Circuit · 2015
- Marvin E. DeBough v. CommissionerUnited States Tax Court · 2014
- Conners v. CommissionerUnited States Tax Court · 1987
3 more not listed; retrieve them via the Exa API.