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crypt sales or that the method of accounting adopted for such
sales does not clearly reflect income, we will not change the
accounting method that was consistently used for crypt sales
during the previous 4 years and that had been implicitly
authorized by respondent. Sec. 1.446-1(c)(2)(ii), Income Tax
Regs.
As a result, we reject Alice Berger's efforts to accelerate
part of Phase II mausoleum crypt sale income into 1988 and to
make it solely taxable to Howard Berger on the ground that she
was not a party to the 1988 joint return.
Issue 4(b). Recognition of Income Upon Transfer of Woodbine
Respondent argues that Howard Berger's transfer to Alice
pursuant to their settlement agreement is similar to the
transfers of partially completed construction contracts by the
corporations in Jud Plumbing & Heating, Inc. v. Commissioner, 153
F.2d 681 (5th Cir. 1946) (liquidating corporation), affg. 5 T.C.
127 (1945), and Standard Paving Co. v. Commissioner, 190 F.2d 330
(10th Cir. 1951) (nontaxable reorganization), affg. 13 T.C. 425
(1949). Respondent argues that, as a result of Howard's
transfer, the method of accounting for mausoleum crypt sales that
we have accepted no longer clearly reflected income, at least as
to him. Respondent relies on section 1.451-5(f), Income Tax
Regs., to justify substituting a percentage of completion method
to account for Howard's share of the income from Phase II
mausoleum crypt sales for 1989. Although Alice Berger disagrees
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