Fraser v. Commissioner
United States Tax Court
Taxpayer was instrumental in acquiring certain property for development. Due to financial difficulties he was unable to participate in the partnership formed to develop the property. However, it was agreed that the taxpayer would have the option to participate in the development at a later date for a proportionate share of the original investment. Taxpayer subsequently sold this option to certain of the other partners.
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Taxpayer was instrumental in acquiring certain property for development. Due to financial difficulties he was unable to participate in the partnership formed to develop the property. However, it was agreed that the taxpayer would have the option to participate in the development at a later date for a proportionate share of the original investment. Taxpayer subsequently sold this option to certain of the other partners. Held, the transaction resulted in the sale or exchange of an option within the meaning of sec. 1234(a), I.R.C. 1954, on account of which the taxpayer realized a gain from the…
1Opinion of the Court
Quealy, Judge:
This proceeding involves a redetermination of a deficiency in income tax asserted against petitioner for the taxable year 1967 in the amount of $35,200.06. As a result of concessions by the parties, the only question presented for decision is whether the petitioner realized a long-term capital gain on account of the receipt of the. sum of $175,000 in consideration of the transfer or relinquishment of petitioner’s right or option to an interest in the partnership known as B & D Properties.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and…
2Cases cited14 opinions
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Commissioner of Internal Revenue v. Golonsky. Commissioner of Internal Revenue v. GoldCourt of Appeals for the Third Circuit · 1952
- Nat Holt and Blanche Holt, Husband and Wife v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- Commissioner of Internal Revenue v. McCue Bros. & Drummond, IncCourt of Appeals for the Second Circuit · 1954
- Golonsky v. CommissionerUnited States Tax Court · 1951
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3Cited by5 opinions
- Estate of O'Daniel v. United StatesCourt of Appeals for the Fifth Circuit · 1993
- Anderson v. United StatesDistrict Court, D. Minnesota · 1979
- Baxter v. CommissionerUnited States Tax Court · 1982
- Fraser v. CommissionerUnited States Tax Court · 1975
- Wilson v. CommissionerUnited States Tax Court · 1977