Bennett Land Co. (A Washington Corp.) v. Commissioner
United States Tax Court
Prior to the sale of farmland to the taxpayer, the seller had summer fallowed the land, incurring expenses of $ 1,800. The sales agreement allocated $ 5,500 of the purchase price to the increase in the fair market value of the land due to its being summer fallowed. Held, neither the expenses attributable to the summer fallow nor the increase in the land's fair market value due to the summer fallow are deductible by the purchaser.
1Opinion of the Court
Irwin, Judge:
Respondent determined a deficiency of $1,210 in petitioner’s corporate income tax return for the fiscal year ending August 31,1973.
The only issue presented for our consideration is whether a purchaser of farmland may deduct the portion of the purchase price attributable to the value of summer fallow as a trade or business expense under section 162.1
FINDINGS OF FACT
Most of the facts have been stipulated. The stipulation of facts, together with the exhibits attached thereto, are incorporated herein by this reference.
Petitioner is a corporation which had its principal place of…
2Cases cited9 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Edwards v. Cuba RailroadSupreme Court of the United States · 1925
- Commissioner of Internal Revenue v. D. B. AndersCourt of Appeals for the Tenth Circuit · 1969
4 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Estate of Rubinow v. CommissionerUnited States Tax Court · 1980
- Boucher v. CommissionerUnited States Tax Court · 1981
- Richard E. Lacey, II v. CommissionerUnited States Tax Court · 2019
- Bennett Land Co. (A Washington Corp.) v. CommissionerUnited States Tax Court · 1978
- Estate of Rubinow v. CommissionerUnited States Tax Court · 1980
2 more not listed; retrieve them via the Exa API.