RED RIVER LUMBER COMPANY v. United States

LARAMORE, Judge.

The plaintiff sues to recover Federal corporate income taxes paid for the calendar year 1945. The primary issue presented is the gain derived by plaintiff on the sale of certain property in, 1945, which in turn involves a determination of the fair market value of certain property owned by plaintiff on March 1, 1913.

The plaintiff duly filed its income tax return for 1945 and paid the tax shown thereon. In this return plaintiff reported a long-term capital gain in the amount of $1,246,822.61, realized on the sale of certain assets to the Pacific Gas & Electric Company.

The…