McDonald v. Commissioner
United States Tax Court
Petitioner, owner of a dairy and breeding herd, sustained a loss on its operation during each of the years 1942 to 1946, inclusive. Petitioner sold certain cattle from the herd in 1946 on which he realized capital gains.
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Petitioner, owner of a dairy and breeding herd, sustained a loss on its operation during each of the years 1942 to 1946, inclusive. Petitioner sold certain cattle from the herd in 1946 on which he realized capital gains. Respondent determined that only one-half of such capital gains is includible in petitioner's gross income from his dairy and breeding herd, and that petitioner's net income must be recomputed for the year 1946 pursuant to section 130 of the Internal Revenue Code of 1939 to limit the deductible losses from such business to $ 50,000 for that year. The respondent concedes that…
1Opinion of the Court
SUPPLEMENTAL OPINION.
Rice, Judge:
The deficiency determined by respondent was based originally on the theory that the proceeds from the sale of cattle by petitioner were taxable as ordinary income rather than capital gains. But, by amended answer, respondent affirmatively raised an alternative issue which must now be decided. Respondent contends, in this alternative issue, that if the proceeds of such sales are taxable as capital gains (as they must be according to the holding of the Court of Appeals) then petitioner’s net income for 1946 must be recomputed pursuant to section 130 of the…
2Cases cited4 opinions
- United States v. BenedictSupreme Court of the United States · 1950
- American Found. Co. v. CommissionerUnited States Tax Court · 1943
- Commissioner of Internal Revenue v. Central Hanover Bank & Trust Co.Court of Appeals for the Second Circuit · 1947
- Benedict v. United StatesUnited States Court of Claims · 1949
3Cited by1 opinion
- McDonald v. CommissionerUnited States Tax Court · 1955