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installment payments did not constitute a capital asset within
the meaning of section 1221.4 Davis v. Commissioner, supra at 7;
4 SEC. 1221. CAPITAL ASSET DEFINED.
For purposes of this subtitle, the term “capital asset”
means property held by the taxpayer (whether or not
connected with his trade or business), but does not
include--
(1) stock in trade of the taxpayer or other
property of a kind which would properly be included in
the inventory of the taxpayer if on hand at the close
of the taxable year, or property held by the taxpayer
primarily for sale to customers in the ordinary course
of his trade or business;
(2) property, used in his trade or business, of a
character which is subject to the allowance for
depreciation provided in section 167, or real property
used in his trade or business;
(3) a copyright, a literary, musical, or artistic
composition, a letter or memorandum, or similar
property, held by--
(A) a taxpayer whose personal efforts created
such property,
(B) in the case of a letter, memorandum, or
similar property, a taxpayer for whom such
property was prepared or produced, or
(C) a taxpayer in whose hands the basis of
such property is determined, for purposes of
determining gain from a sale or exchange, in whole
or part by reference to the basis of such property
in the hands of a taxpayer described in
subparagraph (A) or (B);
(4) accounts or notes receivable acquired in the
ordinary course of trade or business for services
rendered or from the sale of property described in
paragraph (1);
(5) a publication of the United States Government
(including the Congressional Record) which is received
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Last modified: May 25, 2011