Hazlett v. Commissioner

Decided May 18, 1931

United States Board of Tax Appeals · decided 1931-05-18

Where real estate is sold and 20 per cent of the gross consideration is paid in cash and the remainder is represented by notes payable over a period of years, only a pro rata portion of the commission, based on the ratio of the payments made in the year of sale to the gross consideration, may be deducted as selling expenses in the year of sale.

Cited by 1 later decisions — most recently February 1951

Relies on Giffin v. Commissioner

Good law ✅— No negative treatment on recordhow we know

Decided 1931-05-18

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¶1OPINION.

Steenhagen :

¶2The petitioner contends that the full commission of $5,000 should be deducted in 1925, the year of sale, while respondent defends his action in allowing the deduction of only $1,000, or 20 per cent of the commission, on the ground that the first installment of the purchase price, paid in 1925, was only 20 per cent of the whole.

¶3The question presented in this case is the same as that in E. A. Giffin, 19 B. T. A. 1243, and in accordance therewith,

¶4Judgment will be entered for the respondent¡