Godbold v. Commissioner
United States Tax Court
In 1966, petitioners executed a contract covering a period of 62 years for the sale of timber to a timber cutting company. The agreement provided for quarterly fixed payments to petitioners for the sale of 640 cords of wood per year, with payments to be made whether or not any timber was cut. Petitioners retained title to the timber, paid taxes on it, and bore the risk of loss until it was cut.
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In 1966, petitioners executed a contract covering a period of 62 years for the sale of timber to a timber cutting company. The agreement provided for quarterly fixed payments to petitioners for the sale of 640 cords of wood per year, with payments to be made whether or not any timber was cut. Petitioners retained title to the timber, paid taxes on it, and bore the risk of loss until it was cut. A cord credit account was maintained by the purchaser under which petitioners were credited with a minimum of 640 cords per year and debited as the timber was cut. Petitioners were compensated for any…
1Opinion of the Court
Shields, Judge:
Respondent determined deficiencies in petitioners’ income tax for 1978 and 1979 in the respective amounts of $16,086.83 and $1,488.37. After concessions by the parties, the issue remaining for decision is whether certain payments received by petitioners under a long-term contract for the sale of timber must be treated as ordinary income as contended by the respondent, or as income from capital gains under section 631(b)1 or section 1221, as contended by the petitioners.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts and exhibits…
2Cases cited9 opinions
- Larry Bonner v. City of Prichard, AlabamaCourt of Appeals for the Eleventh Circuit · 1981
- Milton Dyal v. United StatesCourt of Appeals for the Fifth Circuit · 1965
- Ah Pah Redwood Company, a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1957
- Lawton v. CommissionerUnited States Tax Court · 1959
- Ah Pah Redwood Co. v. CommissionerUnited States Tax Court · 1956
4 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Godbold v. CommissionerUnited States Tax Court · 1984