Philbin v. Commissioner
United States Tax Court
1. Held, lots sold by the petitioners in 1951 and 1952 were held by them primarily for sale to customers in the ordinary course of their trade or business and the gains derived therefrom are taxable as ordinary income. 2. Held, the Tax Court has jurisdiction over self-employment tax imposed by sections 480 and 481, I. R. C. 1939, and held, further, the petitioners were subject to the self-employment tax for the years 1951 and 1952 since the income from the sale of lots in…
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1. Held, lots sold by the petitioners in 1951 and 1952 were held by them primarily for sale to customers in the ordinary course of their trade or business and the gains derived therefrom are taxable as ordinary income. 2. Held, the Tax Court has jurisdiction over self-employment tax imposed by sections 480 and 481, I. R. C. 1939, and held, further, the petitioners were subject to the self-employment tax for the years 1951 and 1952 since the income from the sale of lots in the ordinary course of business does not fall within section 481 (a) (4) or 481 (c) (5) excluding from self-employment tax…
1Opinion of the Court
OPINION.
MuiiRONET, Judge:
The first issue in these consolidated cases is whether the profit realized by the petitioners from the sale of vacant lots in the city of Chicago in 1951 and 1952 is taxable as long-term capital gain or as ordinary income. Petitioners contend that the vacant lots were bought with “surplus funds” as long-term investments ; that they were capital assets which were held for more than 6 months and therefore the profit realized from their sale should be given long-term capital gains treatment under section 117 (a) (1), Internal Eevenue Code of 1939. Eespondent determined…
2Cases cited11 opinions
- Thrift v. CommissionerUnited States Tax Court · 1950
- MAULDIN v. COMMISSIONER OF INTERNAL REVENUE (Two Cases)Court of Appeals for the Tenth Circuit · 1952
- Mauldin v. CommissionerUnited States Tax Court · 1951
- Fahs v. CrawfordCourt of Appeals for the Fifth Circuit · 1947
- Dunlap, Acting Collector of Internal Revenue v. Oldham Lumber CoCourt of Appeals for the Fifth Circuit · 1950
6 more not listed; retrieve them via the Exa API.
3Cited by34 opinions
- Estate of Finder v. CommissionerUnited States Tax Court · 1961
- Frankenstein v. CommissionerUnited States Tax Court · 1958
- Adam v. CommissionerUnited States Tax Court · 1973
- Thompson v. CommissionerUnited States Tax Court · 1962
- Guardian Indus. Corp. v. CommissionerUnited States Tax Court · 1991
29 more not listed; retrieve them via the Exa API.