Grove v. Commissioners of Internal Revenue
United States Tax Court
1. An agreement entitled "Joint Venture Agreement" entered into by one of petitioners and four other individuals under which an 18-unit condominium was to be built on property, title to which was placed in a trust for the benefit of such five individuals and their wives, created a partnership as defined in sec. 761, I.R.C. 1954. 2. Since under the agreement the joint venture was to build and sell the 18 condominiums, the partnership was engaged in the trade or business of…
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1. An agreement entitled "Joint Venture Agreement" entered into by one of petitioners and four other individuals under which an 18-unit condominium was to be built on property, title to which was placed in a trust for the benefit of such five individuals and their wives, created a partnership as defined in sec. 761, I.R.C. 1954. 2. Since under the agreement the joint venture was to build and sell the 18 condominiums, the partnership was engaged in the trade or business of constructing and selling condominiums and therefore the income from the operation is ordinary income with petitioners'…
1Opinion of the Court
OPINION
Scott, Judge:
Respondent determined a deficiency in petitioners’ income tax for the calendar year 1964 in the amount of $2,153.59.
■ The only issue for decision is whether an amount received by petitioners as profit from the construction and sale of 18 condominium units pursuant to an agreement entitled “Joint Venture Agreement,” is ordinary income or capital gain.
All of the facts have been stipulated and are found accordingly.
Petitioners, husband and wife who resided in Chicago, Ill., at the time of the filing of their petition in this case, filed their joint Federal income tax return…
2Cases cited6 opinions
- Bauschard v. CommissionerUnited States Tax Court · 1959
- Estate of Freeland v. CommissionerCourt of Appeals for the Ninth Circuit · 1968
- United States v. Charles E. And Lois W. RosebrookCourt of Appeals for the Ninth Circuit · 1963
- Robert A. Riddell v. Leon W. ScalesCourt of Appeals for the Ninth Circuit · 1969
- Barham v. United StatesDistrict Court, M.D. Georgia · 1969
1 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Brannen v. CommissionerUnited States Tax Court · 1982
- Goodwin v. CommissionerUnited States Tax Court · 1980
- Drobny v. CommissionerUnited States Tax Court · 1986
- Davis v. CommissionerUnited States Tax Court · 1980
- Brown Group v. CommissionerUnited States Tax Court · 1994
12 more not listed; retrieve them via the Exa API.