Burrell Groves, Inc. v. Commissioner
United States Tax Court
Installment Method -- Satisfaction or Disposition of Installment Obligation -- Sec. 44, I. R. C., 1939. -- The previously unreported gain from a sale being reported under section 44 (b) of the Internal Revenue Code of 1939 became taxable when the installment obligations were satisfied by the acceptance of obligations of a third party who purchased the property from the original obligee.
1Opinion of the Court
OPINION.
MuRdock, Judge:
The Commissioner determined a deficiency of $10,250.78 in the income tax of the petitioner for its fiscal year ended May 31, 1946, The only issue for decision is whether the deferred profit on an installment sale of real estate is taxable during this fiscal year as a result of the petitioner’s canceling and satisfying the installment obligations in connection with the resale of the property by the obligees and the acceptance by the petitioner of new obligations of the new purchasers. The facts have been presented by a stipulation which is adopted as the findings of fact.
2Cases cited2 opinions
- Morrison v. CommissionerUnited States Tax Court · 1949
- Spencer v. GrangerDistrict Court, W.D. Pennsylvania · 1952
3Cited by18 opinions
- Shedd v. CommissionerUnited States Tax Court · 1954
- Burrell Groves, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1955
- Jack Ammann Photogrammetric Engineers, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1965
- First National Bank in Albuquerque v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1990
- Cunningham v. CommissionerUnited States Tax Court · 1965
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