Sykes v. Commissioner
United States Tax Court
In 1967 and 1968 petitioner, a farmer, sold alfalfa leafcutter bee larvae in bee boards. Some larvae were raised by petitioner and others were purchased for resale. Petitioner reported the amounts received from the sale of purchased bee larvae as ordinary income and the amounts received from the sale of the raised bee larvae as capital gains.
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In 1967 and 1968 petitioner, a farmer, sold alfalfa leafcutter bee larvae in bee boards. Some larvae were raised by petitioner and others were purchased for resale. Petitioner reported the amounts received from the sale of purchased bee larvae as ordinary income and the amounts received from the sale of the raised bee larvae as capital gains. Held, that (1) the raised bee larvae were held primarily for sale to customers in the ordinary course of petitioner's business and do not qualify as a capital asset entitled to preferential long-term capital gain treatment under sec. 1221, I.R.C. 1954;…
1Opinion of the Court
Dawson, Judge:
Respondent determined the following deficiencies in petitioners’ Federal income taxes:
Taxable year Amount
1967 _$3,073.79
1968 _ 9,751.91
Three issues are presented for decision. They are: (1) Whether petitioner Charles A. Sykes is entitled to capital gain treatment on the sale of raised alfalfa leafcutter bee larvae; (2) whether “breeder” bees qualify as “livestock” under section 1231 (b) (3) (B), I.B.C. 1954;1 and (3) whether petitioner is entitled to deduct in the year of purchase the cost of bee larvae purchased for resale or whether he must offset the cost against the sales…
2Cases cited11 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Malat v. RiddellSupreme Court of the United States · 1966
- Patterson v. BelcherCourt of Appeals for the Fifth Circuit · 1962
- The Pennroad Corporation and Affiliated Companies v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
6 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Dodds v. CommissionerUnited States Tax Court · 1986
- Fabiani v. CommissionerUnited States Tax Court · 1973
- Huber v. CommissionerUnited States Tax Court · 1984
- Long v. Comm'rUnited States Tax Court · 2013
- Sykes v. CommissionerUnited States Tax Court · 1972
1 more not listed; retrieve them via the Exa API.