Nolla v. Secretary of the Treasury

Section 5 (/) of the Income Tax Act, as amended by Act No. 150, Laws of Puerto Rico, 1948, provides that income tax shall be paid on only 25% of the income resulting from the sale by an individual of real estate held by him as the owner thereof for more than one year. However, ^ 5(f) also pro*722vides that this reduced rate shall not apply to sales by an individual of . . real estate held as owner primarily for the sale to clients in the ordinary course of his industry or business . . The question here is whether, in making certain sales of real estate, the taxpayer was in the business of-selling…