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treatment under section 453.1 Section 453(a) provides that
except as otherwise provided, income from an installment sale
shall be taken into account for purposes of taxation under the
installment method. An installment sale is defined in section
453(b) as a "disposition of property where at least 1 payment is
to be received after the close of the taxable year in which the
disposition occurs". Section 453(c) defines the installment
method of reporting as "a method under which the income
recognized for any taxable year from a disposition is that
proportion of the payments received in that year which the gross
profit (realized or to be realized when payment is completed)
bears to the total contract price". If the facts fulfil the
requirements of an installment sale, this method of tax reporting
is to be followed unless the taxpayer elects to have the section
not apply to such a disposition. Sec. 453(d).
In the instant case, the property was conveyed by petitioner
husband to the facilitators and by them to the purchasers on
December 22, 1988. Nevertheless, no payment for the conveyance,
in the form of the properties detailed above, was received until
1 This issue was not raised by petitioners in their
petition herein, nor by respondent in answer. However, it was
argued by petitioners on brief, and respondent responded to it
and accepted it on brief. Normally we shall not consider an
issue that was not pleaded, but raised for the first time on
brief. Rule 34(b)(4). However, since respondent has replied to
the argument and has accepted petitioners' position thereon, the
issue will be deemed raised and tried by consent of the parties
under Rule 41(b).
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