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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
453(l)(1)(B).
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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