Harmston v. Commissioner
United States Tax Court
T, as buyer, entered into two contracts for the purchase of two orange groves. The groves were newly planted, and required 4 years of maintenance and care in order to become mature or established. The contract price was $ 4,500 an acre, payable at the rate of $ 1,125 per acre per year over a 4-year period. During the 4-year period the seller remained in possession and assumed full responsibility in the contracts to provide maintenance and care.
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T, as buyer, entered into two contracts for the purchase of two orange groves. The groves were newly planted, and required 4 years of maintenance and care in order to become mature or established. The contract price was $ 4,500 an acre, payable at the rate of $ 1,125 per acre per year over a 4-year period. During the 4-year period the seller remained in possession and assumed full responsibility in the contracts to provide maintenance and care. The seller also retained legal title, paid the real estate taxes, and in general retained most of the burdens and benefits of ownership. Held, the…
1Opinion of the Court
OPINION
Raum, Judge:
Petitioner entered into two contracts with Jon-Win, in each of which he undertook to purchase from it an orange grove of approximately 17 acres at $4,500 an acre. Each contract was stated to run for a period of 4 years. Both groves were newly planted in the spring of 1967, and it appears to be recognized that it takes 4 years for an orange grove to mature or become established. Under each contract petitioner was required to pay one-fourth of the purchase, price ($1,125 per acre) each year, and upon payment of the last installment he was to be entitled to a deed to the…
2Cases cited20 opinions
- Commissioner of Internal Revenue v. Union Pac. R. Co.Court of Appeals for the Second Circuit · 1936
- Merrill v. CommissionerUnited States Tax Court · 1963
- Commissioner of Internal Revenue v. SegallCourt of Appeals for the Sixth Circuit · 1940
- Floyd R. Clodfelter and Enna L. Clodfelter v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1970
- Clodfelter v. CommissionerUnited States Tax Court · 1967
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3Cited by2 opinions
- Advo, Inc. & Subsidiaries v. CommissionerUnited States Tax Court · 2013
- Harmston v. CommissionerUnited States Tax Court · 1973