Kaltreider v. Commissioner
United States Tax Court
1. Petitioners, in 1936, purchased a tract of land upon a portion of which they constructed their residence. In 1947, with their son, they organized a corporation to engage in the building and construction trade. All of its stock, with the exception of a few shares issued to their grandchildren, was held by petitioners and their son. In 1948, petitioners subdivided a tract of the land purchased in 1936 into 15 lots, on 11 of which the corporation constructed houses.
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1. Petitioners, in 1936, purchased a tract of land upon a portion of which they constructed their residence. In 1947, with their son, they organized a corporation to engage in the building and construction trade. All of its stock, with the exception of a few shares issued to their grandchildren, was held by petitioners and their son. In 1948, petitioners subdivided a tract of the land purchased in 1936 into 15 lots, on 11 of which the corporation constructed houses. During 1951, 5 of the houses and their lots were sold to individual purchasers. The 4 remaining vacant lots were sold to the…
1Opinion of the Court
OPINION.
Rice, Judge:
Section 117 (a) of the 1939 Code excludes from the definition of those assets entitled to capital gains treatment property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business. Therefore, iii deciding whether the gain from the real estate sales in issue was taxable as ordinary income or as a capital gain, we must first decide whether the activities performed by petitioners with relation to the development and sale of the acreage constituted a trade or business within the meaning of the statute.
As has often been noted, what…
2Cases cited6 opinions
- Fuller v. CommissionerUnited States Tax Court · 1953
- Snell v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1938
- Fuller v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1954
- Bouche v. CommissionerUnited States Tax Court · 1952
- Welch v. SolomonCourt of Appeals for the Ninth Circuit · 1938
1 more not listed; retrieve them via the Exa API.
3Cited by82 opinions
- Walter H. Kaltreider and Irene C. Kaltreider v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Mendes v. Comm'rUnited States Tax Court · 2003
- Fred N. Acker v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1958
- Bauschard v. CommissionerUnited States Tax Court · 1959
- Heman v. CommissionerUnited States Tax Court · 1959
77 more not listed; retrieve them via the Exa API.