- 2 -
Unless otherwise indicated, all section references are to the
Internal Revenue Code (Code) in effect for the taxable years in
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
The issues we must decide in the instant case are: (1)
Whether petitioners, for taxable year 1989, must recognize a
capital gain pursuant to the installment sale provisions of
section 453 on petitioner John T. Barrett, Jr.’s (petitioner)
disposition of shares (shares) of stock in Drexel Burnham Lambert
Group, Inc. (Drexel); (2) whether petitioners are entitled to a
bad debt deduction for taxable year 1990 for the alleged
worthlessness of a certain note issued by Drexel to petitioner as
partial consideration for the purchase of the shares; and (3)
whether petitioners are liable for the accuracy-related penalty
pursuant to section 6662(a).
FINDINGS OF FACT
Some of the facts and certain exhibits have been stipulated
for trial pursuant to Rule 91. The parties’ stipulations are
incorporated in this Memorandum Opinion by reference and are
found accordingly except as noted below.
General Background
Petitioners resided in Providence, Rhode Island, when they
filed their petition in the instant case. Petitioners reported
their income and deductions for the years in issue on the basis
of the cash receipts and disbursements method of accounting.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011