10-42 Corp. v. Commissioner
United States Tax Court
Petitioner sold to A corporation property consisting of land and building for $ 500,000 in the following manner: A would assume a $ 400,000 mortgage and execute a $ 100,000 purchase-money mortgage due in 11 years. No payment on the purchase price was made in the year of sale and the only payment called for was the one 11 years hence of $ 100,000. Both petitioner and A were owned solely by the same individual.
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Petitioner sold to A corporation property consisting of land and building for $ 500,000 in the following manner: A would assume a $ 400,000 mortgage and execute a $ 100,000 purchase-money mortgage due in 11 years. No payment on the purchase price was made in the year of sale and the only payment called for was the one 11 years hence of $ 100,000. Both petitioner and A were owned solely by the same individual. Held: Petitioner cannot avail itself of the installment method of sec. 453, I.R.C. 1954, which requires the receipt of at least two payments or installments. The elimination of the…
1Opinion of the Court
Tietjens, Judge:
The Commissioner determined a deficiency in petitioner’s Federal income tax for the taxable year ending June 30, 1961, in the amount of $25,806.83. Due to a concession 'by petitioner, there are only two issues remaining for our decision. The first is whether petitioner is entitled to report the gain on the sale of real property under the installment method of section 453, I.R.C. 1954.1 The second is whether the aforementioned gain is entitled to capital gains treatment or is subject to the provisions of section 1239 relating to sales between related parties.
FINDINGS op facts
The…
2Cases cited3 opinions
- Calvin D. Mitchell and Fay Bond Mitchell v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1962
- Prendergast v. CommissionerUnited States Board of Tax Appeals · 1931
- Mitchell v. CommissionerUnited States Tax Court · 1960
3Cited by14 opinions
- Yamamoto v. CommissionerUnited States Tax Court · 1980
- Insilco Corp. v. CommissionerUnited States Tax Court · 1979
- Baltimore Baseball Club, Inc. v. United StatesUnited States Court of Claims · 1973
- Harris v. CommissionerUnited States Tax Court · 1971
- Roy Miller and Artie Miller v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1975
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