Paul v. Commissioner
United States Tax Court
1. Section 117 (a) (1) (B) -- Depreciable Property Used in Trade or Business. -- Apartment building held to be depreciable property which the petitioner "used in his trade or business" where the petitioner constructed the building with the intention of renting apartments and in fact did rent apartments until the building was sold. 2. Section 117 (j) (1) -- Holding Period. -- Petitioner had not "held" for more than 6 months a newly constructed apartment building that was sold…
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1. Section 117 (a) (1) (B) -- Depreciable Property Used in Trade or Business. -- Apartment building held to be depreciable property which the petitioner "used in his trade or business" where the petitioner constructed the building with the intention of renting apartments and in fact did rent apartments until the building was sold. 2. Section 117 (j) (1) -- Holding Period. -- Petitioner had not "held" for more than 6 months a newly constructed apartment building that was sold less than 6 months after completion.
1Opinion of the Court
OPINION.
Aeundell, Judge:
The broad issue before us is whether the petitioner’s gain of $66,329.91 on the sale of an apartment building1 is taxable as a capital gain or as ordinary income. The respondent argues that the building was not a capital asset but was instead depreciable property which the petitioner “used in his trade or business,” section 117 (a) (1) (B), Internal Eevenue Code, and, further, that the capital gains provisions of section 117 (j)2 are not applicable because the building was not held for more than 6 months.
The evidence clearly establishes that the building, a depreciable…
2Cases cited5 opinions
- McFeely v. CommissionerSupreme Court of the United States · 1935
- Hazard v. CommissionerUnited States Tax Court · 1946
- Fackler v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1943
- Marsh v. CommissionerUnited States Tax Court · 1949
- Dunigan v. BurnetCourt of Appeals for the D.C. Circuit · 1933
3Cited by19 opinions
- Paul v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1953
- Aagaard v. CommissionerUnited States Tax Court · 1971
- Draper v. CommissionerUnited States Tax Court · 1959
- Swenson v. CommissionerUnited States Tax Court · 1961
- Russo v. CommissionerUnited States Tax Court · 1977
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