Farley v. Commissioner
United States Tax Court
Petitioners, husband and wife, acquired in 1923 and 1925 real estate in New Orleans as community property. The property was acquired and used in connection with petitioners' nursery business. The property had been platted some years before purchase by petitioners. In 1937 the city of New Orleans built streets through the property at its own expense in accordance with the original plats.
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Petitioners, husband and wife, acquired in 1923 and 1925 real estate in New Orleans as community property. The property was acquired and used in connection with petitioners' nursery business. The property had been platted some years before purchase by petitioners. In 1937 the city of New Orleans built streets through the property at its own expense in accordance with the original plats. This was not desired or requested by petitioners, whose property was thus increased in value for residential purposes but decreased in value for use as a nursery. During the taxable year petitioners sold 25…
1Opinion of the Court
OPINION.
Hill, Judge:
The question presented is whether the profit realized on the sales of the Gentilly lots is taxable as capital or ordinary gain. Respondent argues that the property involved is excepted from the general definition of capital assets because “held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business,” within the meaning of section 117 (a) (1) of the Internal Revenue Code.1 Petitioner argues that the property was not so held, because he was not engaged in the trade or business of selling real estate.
Respondent contends primarily that…
2Cases cited2 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- McFaddin v. CommissionerUnited States Tax Court · 1943
3Cited by97 opinions
- Mauldin v. CommissionerUnited States Tax Court · 1951
- Greenspon v. CommissionerUnited States Tax Court · 1954
- Phillips v. Comissioner of Internal RevenueUnited States Tax Court · 1955
- Wood v. CommissionerUnited States Tax Court · 1951
- Hoover v. CommissionerUnited States Tax Court · 1959
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