William M. Reese and Catholeen Reese v. Commissioner of Internal Revenue

GOLDBERG, Circuit Judge:

Taxpayers William M. Reese and Catholeen Reese appeal from a decision of the United States Tax Court, T.C.M. ¶ 76,275 (P-H 1976), which held, in part, that losses sustained by taxpayers upon the disposition of two properties were capital losses, rather than ordinary losses as claimed by taxpayers. The sole issue raised on appeal is whether the Tax Court erred in holding that the losses were capital. We conclude that the Tax Court correctly characterized the losses and therefore affirm.

I. BACKGROUND

The Commissioner of Internal Revenue determined deficiencies in…