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proceeds from contract 5554A to secure a loan from Commodity
Credit Corporation (CCC).
On January 2, 1992, Union Elevator paid petitioners
$157,264.26, the amount due under the contracts. It was not
unusual for petitioners to collect payment on the contracts soon
after the first of the year. The balance of the loan from CCC on
this date was $32,725.37, consisting of principal and interest.
This amount was not paid to petitioners but was withheld and
remitted to CCC. Petitioners, in preparing their 1991 Federal
income tax return, did not include in income any amount relating
to the contracts for regular tax or alternative minimum tax (AMT)
purposes.
By statutory notice of deficiency, respondent determined
that petitioners' AMTI for 1991 should be increased to take into
account the deferred sales proceeds from the contracts. Respon-
dent increased petitioners' AMTI by $156,121 to account for these
proceeds.
OPINION
Section 612 provides that gross income means all income from
whatever source derived. Sec. 61(a)(3). Absent a statutory
exception, section 1001(c) requires a taxpayer to recognize, in
2All section references are to the Internal Revenue Code in
effect for the taxable year in issue, and all Rule references are
to the Tax Court Rules of Practice and Procedure, unless
otherwise indicated.
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