Bud Raymond - Page 5

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          gross receipts in petitioner’s 1995 tax return.                             
          Realization and Recognition of Income                                       
               Section 1001(a) provides that the gain realized from the               
          sale of property shall be the excess of the amount realized over            
          the adjusted basis.  The amount realized consists of “the sum of            
          any money received plus the fair market value of the property               
          (other than money) received.”  Sec. 1001(b).  If the taxpayer has           
          a realized gain (after the calculations of the amount realized              
          and adjusted basis), the taxpayer must generally recognize the              
          entire gain as income.  See sec. 1001(c).  The tax law, however,            
          provides that for certain sales of property the taxpayer can use            
          the installment method to defer recognition of income.  See secs.           
          451(a), 453, 1001(c).                                                       
               Under section 453(a), a taxpayer can use the installment               
          method only if there has been an installment sale.  An                      
          installment sale is a “disposition of property where at least 1             
          payment is to be received after the close of the taxable year in            
          which the disposition occurs.”  Sec. 453(b)(1).  Using the                  
          installment method, the taxpayer recognizes a proportion of the             
          payment received in any given year commensurate with the                    
          percentage that the gross profit bears to the total contract                
          price.  See sec. 453(c);  Wang v. Commissioner, T.C. Memo 1998-             
          127; Berger v. Commissioner, T.C. Memo. 1996-76.  Dealer                    

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