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$39,393 in capital gains, petitioner was entitled to a short-term
capital loss in the amount of $2,090.
With respect to the capital gains derived from the sale of
real property in 1991, respondent contends that petitioner
effectively elected out of the installment method by reporting
the full amount of his gain on his timely filed 1991 Federal
income tax return. Petitioner, on the other hand, argues that he
received payment after the close of the taxable year in which the
disposition of the real property occurred.
Petitioner evidently contends that $250,000 of the real
estate proceeds were deposited with the local courts in Hawaii
pending resolution of the Moomuku lawsuit. In that regard, he
was also forced to take a note for $600,000. This event caused
petitioner to file an amended tax return. On the other hand,
respondent argues that petitioner was liable for the full amount
originally reported in 1991. Petitioner presented no
documentation such as affidavits or receipts to demonstrate that
a portion of the proceeds was deposited with the local courts.
He also did not present any evidence regarding the alleged note.
His testimony on this particular subject was disjointed. There
was no testimony by other witnesses. Hence, petitioner has not
persuaded us that the proceeds were not under his dominion and
control.
Section 453 provides that income from an installment sale is
accounted for under the installment method. Bolton v.
Commissioner, 92 T.C. 303, 305 (1989). An installment sale is
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