Lemmen v. Commissioner
United States Tax Court
Petitioner Gerrit B. Lemmen purchased a herd of cattle in 1973 for a stated price of $ 40,000 and a second herd of cattle in 1974 for a stated price of $ 20,000. At the time of these purchases, the fair market value of the cattle was $ 7,000 per herd.
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Petitioner Gerrit B. Lemmen purchased a herd of cattle in 1973 for a stated price of $ 40,000 and a second herd of cattle in 1974 for a stated price of $ 20,000. At the time of these purchases, the fair market value of the cattle was $ 7,000 per herd. In connection with each purchase, petitioner entered into a maintenance contract under which the seller agreed to breed and otherwise care for the cattle in exchange for some of the heifer calves and all of the bull calves to be born during the term of the contract. Petitioner did not expect to realize any income from his cattle-breeding…
1Opinion of the Court
Featherston, Judge-.
Respondent determined deficiencies in petitioners’ Federal income taxes as follows:
Year Deficiency
1973.$10,030
1974. 19,905
1975. 4,369
After concessions by both parties, the issues remaining for decision are:(1) Whether petitioner Gerrit B. Lemmen’s investment in polled Hereford cattle during the years in question constituted an activity engaged in for profit, and, if so;(2) Whether the excess of the purchase price of the cattle ovér their fair market value at the time of purchase represents an intangible asset that is not subject to amortization or depreciation.
FINDINGS OF…
2Cases cited23 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Bixby v. CommissionerUnited States Tax Court · 1972
- Engdahl v. CommissionerUnited States Tax Court · 1979
- Jasionowski v. CommissionerUnited States Tax Court · 1976
- Allen v. CommissionerUnited States Tax Court · 1979
18 more not listed; retrieve them via the Exa API.
3Cited by147 opinions
- Siegel v. CommissionerUnited States Tax Court · 1982
- Beck v. CommissionerUnited States Tax Court · 1985
- Rose v. CommissionerUnited States Tax Court · 1987
- Fox v. CommissionerUnited States Tax Court · 1983
- Estate of Baron v. CommissionerUnited States Tax Court · 1984
142 more not listed; retrieve them via the Exa API.