Barrios v. Commissioner
United States Tax Court
Land which was originally purchased as a plantation and later rendered useless for farming by the construction of a canal in the vicinity, was surveyed, subdivided into lots, landscaped, and improved with water mains, streets, and culverts, and 233 of 263 lots were sold in 130 sales in a 5-year period.
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Land which was originally purchased as a plantation and later rendered useless for farming by the construction of a canal in the vicinity, was surveyed, subdivided into lots, landscaped, and improved with water mains, streets, and culverts, and 233 of 263 lots were sold in 130 sales in a 5-year period. Held, the lots were held in the taxable years primarily for sale to customers in the ordinary course of a trade or business, and the gain realized is taxable as ordinary income rather than long-term capital gain. Held, further, the petitioner is liable for additions to the tax under section 294…
1Opinion of the Court
Train, Judge:
Respondent determined deficiencies in the petitioners’ income tax and additions to tax as follows:
Additions to tax under sec. 294 Year Deficiency (d) (2)
1951_$13, 446. 78 _
1952_ 8, 077. 64 $520. 27
1953_ 4,333. 36 208. 02
The issues are (1) whether the gain realized from the sale of real estate in the years 1951, 1952, and 1953 is taxable as ordinary income or as capital gains; and (2) whether petitioners are liable for additions to tax in the years 1952 and 1953 under section 294 (d) (2) of the Internal Revenue Code of 1939 for substantial underestimates of the estimated tax.
FINDIN…
2Cases cited22 opinions
- Galena Oaks Corporation v. Frank Scofield, Collector of Internal RevenueCourt of Appeals for the Fifth Circuit · 1954
- Thrift v. CommissionerUnited States Tax Court · 1950
- MAULDIN v. COMMISSIONER OF INTERNAL REVENUE (Two Cases)Court of Appeals for the Tenth Circuit · 1952
- Rollingwood Corp. v. Commissioner of Internal Revenue. Bohannon v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1951
- Mauldin v. CommissionerUnited States Tax Court · 1951
17 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Estate of Luke J. Barrios, Deceased and Sallie F. Barrios, Surviving Wife v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Thompson v. CommissionerUnited States Tax Court · 1962
- Moore v. CommissionerUnited States Tax Court · 1958
- Barrios v. CommissionerUnited States Tax Court · 1957
- Kirsch v. CommissionerUnited States Tax Court · 1961
5 more not listed; retrieve them via the Exa API.