Bud Raymond - Page 7

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          argues that because petitioner’s sales are dealer dispositions,             
          the installment method is unavailable to petitioner pursuant to             
          section 453(b)(2)(A).  Petitioner counters that the definitions             
          of a dealer as listed in Black’s Law Dictionary 399 (6th Ed.                
          1990) and Webster’s Encyclopedic Unabridged Dictionary of the               
          English Language 371 (1989) lead to the conclusion that one who             
          makes property to sell is not a dealer.  Because he constructs              
          homes, petitioner argues that he is not a dealer, and therefore             
          the sales cannot be categorized as dealer dispositions.  For the            
          following reasons, we agree with respondent.                                
          Dealer Dispositions                                                         
               Section 453(b)(2)(A) prohibits the use of the installment              
          method with regard to income from a “dealer disposition”.  See              
          also sec. 453(a)(1), (b)(1).  The term “dealer disposition”                 
          includes “any disposition of real property which is held by the             
          taxpayer for sale to customers in the ordinary course of the                
          taxpayer’s trade or business.”  Sec. 453(l)(1)(B).  Because                 
          Congress has provided the meaning of a dealer disposition, we are           
          precluded from resorting to a dictionary definition of the word             
          “dealer” in deciding the issue in dispute.  We therefore analyze            
          whether petitioner falls within the context of section                      
               To establish whether a taxpayer has held property for sale             
          to customers in the ordinary course of his trade or business, we            

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