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equals the selling price and includes the full face amount of any
installment obligations received in connection with the sale is
considered to have made an effective election that the
installment sales provisions of section 453 are not applicable.
See sec. 15A.453-1T(d)(3)(i), Temporary Income Tax Regs., supra.
Generally, such an election is irrevocable and may only be
revoked with the Secretary's permission. See sec. 15A.453-
1T(d)(4), Temporary Income Tax Regs., supra. Here, petitioners
never applied to the Commissioner to have their election revoked
and to have real estate gains at issue taxed under the section
453 installment method. Petitioners admittedly now seek the
benefits of the installment method because a substantial section
179 expense claimed on their 1994 income tax return was
disallowed; thus, they have been deprived of a deduction that
would have substantially offset those gains. Section 15A.453-
1(d)(4), Temporary Income Tax Regs., supra, provides generally
that an election not to have the installment method apply will
not be revoked when one of the purposes for the revocation is the
avoidance of Federal income taxes. Stated another way, the
election is not generally revocable where the taxpayer's desire
for the revocation is based on hindsight rather than foresight.
The Court, therefore, rejects petitioners' claim to have their
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Last modified: May 25, 2011