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each contract sold counts toward satisfaction of the minimum
sales quota that must be achieved for the year in order to
qualify for release of unconsumed reserves attributable to any
contracts sold during the same year; it also contributes toward
the minimum account balance required in order to receive
unconsumed reserves attributable to currently expiring contracts.
In brief, the many distinctive benefits and risks of the VSC
arrangement for the Dealership are attributable to the form of a
present sale in which it is cast: "It is the sale itself which
makes a difference." General Gas Corp. v. Commissioner, 293 F.2d
at 41. Therefore, it is entirely appropriate to treat the
arrangement as a present sale for Federal income tax purposes,
with consideration received up front in the form of cash and
reserve credits. Cf. id.; Klimate Master, Inc. v. Commissioner,
T.C. Memo. 1981-292 (both discussing significance for tax
treatment of finance charges of distinction between holding
installment paper and selling it).
Like the taxpayers in the Hansen line of cases, petitioners
argue that the inability of the Dealership to predict at the time
it sold a VSC how much of the reserve it would ultimately
recover, either through performance of repairs or upon expiration
of the contract, precludes satisfaction of the necessary
conditions for accrual under the all events test. They attempt
to distinguish Hansen on the ground that in that case the funds
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