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Reconciliation Act of 1987 (the 1987 Act), Pub. L. 100-203, sec.
10202, 101 Stat. 1330-388, repealed section 453C for sales after
December 31, 1987. However, the 1987 Act created section 453(l),
which contains language nearly identical to that found in section
453C concerning the denial of installment sales treatment for
dealer dispositions, with an exception for sales of residential
lots. See 1987 Act sec. 10202(b)(2), 101 Stat. 1330-388. Thus,
in repealing section 453C and enacting section 453(l), Congress
did not alter the treatment for installment obligations arising
from the sale of residential lots. H. Conf. Rept. 100-495 at 927
(1987), 1987-3 C.B. 193, 207.
Respondent has not issued regulations in connection with
section 453(l) but previously had issued temporary regulations
for the now-repealed section 453C. Since the relevant language
in section 453(l) is identical to that used in section 453C, we
turn to the regulations under section 453C for guidance in
interpreting the term "residential lots" contained in section
453(l)(2)(B).
Section 1.453C-8T(4), Temporary Income Tax Regs., 53 Fed.
Reg. 34725 (Sept. 8, 1988), defines a residential lot as "a
parcel of unimproved land upon which the purchaser intends to
construct (or intends to contract to have another person con-
struct) a dwelling unit for use as a residence by the purchaser."
Petitioner argues that the land sold by EIC was zoned such that a
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