- 77 -
Commissioner, 324 F.2d 298, 302 (3d Cir. 1963), affg. T.C. Memo.
1962-68.
The American Cemetery Consultants appraisal identified the
gross value of the assets that we find to be qualified for
installment treatment as $381,200, out of a total gross asset
valuation of $842,768.21 We therefore find, using the Cohan
rule, that 45 percent of Alice Berger's gain from the sale
qualifies for installment treatment.22 We leave for the Rule 155
computation the determination of the ordinary gain currently
taxable to Alice Berger on the sale and the amounts and character
(as long-term or short-term) of the items of gain entitled to
installment treatment in her hands.
21Removing the $20,000 of cash from the equation leaves the
following allocation of capital gain (installment treatment) and
ordinary gain (dealer disposition) items:
Assets qualifying for Assets not qualifying
installment treatment for installment treatment
Office building $100,000 Accounts receivable $172,298
Residence 75,000 Grave spaces 12,518
Service building 80,000 Mausoleum crypts 42,992
Storage building 40,000 Creamation niches 14,205
Equipment 17,000 Undeveloped land 219,555
Other equipment 26,000
Roads & landscaping 43,200 _______
Total 381,200 461,568
22In so doing, we take account of the fact that the
appraisal company substantially discounted the value of the
Oct.1, 1988, receivables, amounting to $428,601--approximately
the same amount as the stipulated Nov. 17, 1989, face amount of
the receivables ($429,371)--to 41.6 percent of their face amount:
$172,298.
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