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The evidence in the record with respect to the Woodbine
burial rights, developed or undeveloped, does not indicate any
use of them by Woodbine other than for sale to customers in the
ordinary course. See Major Realty Corp. v. Commissioner, 749
F.2d 1483, 1488 (11th Cir. 1985) (assets sold in the ordinary
course of business), affg. in part and revg. and remanding on
other issues T.C. Memo. 1981-361. The Woodbine books and
records reflect these assets under an "inventory" classification.
So does the appraisal prepared by American Cemetery Consultants.
Therefore, the burial rights that had not yet been sold to
customers were inventory or property held for sale to customers
in the ordinary course of trade or business and not eligible for
the installment method.
In identifying dealer dispositions of both personalty and
realty, the Code refers to "any disposition". Sec. 453(l)(1)(A)
and (B). Therefore the sale, whether in bulk or individually, of
the burial rights that are normally sold to the public would be
a dealer disposition of property. As a dealer disposition, the
sale of those component assets of Woodbine is not eligible for
the installment method. The component assets clearly not
entitled to installment treatment are those classified in the
American Cemetery Consultants' appraisal as grave spaces,
20(...continued)
heirs-at-law or devisees of the deceased owner); Weiss v. Cedar
Park Cemetery, 572 A.2d 662, 666-667 (N.J. Super. Ct. App. Div.
1990). Therefore, the Woodbine burial rights appear to be more
in the nature of real property than personalty.
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