Carter-Colton Cigar Co. v. Commissioner
United States Tax Court
Petitioner purchased unimproved real estate with intention of erecting thereon a business building to be occupied by it. Plans and specifications were prepared, but the original purpose was later abandoned and the property was sold at the first opportunity. Held, the property was "used in the trade or business" of petitioner, and loss sustained on its sale was ordinary loss.
1Opinion of the Court
OPINION.
Kern, Judge:
The single question for decision here is whether the loss sustained by petitioner from the sale in 1943 of the vacant lot was an ordinary or a capital loss.
It is petitioner’s position that the lot was not a capital asset by reason of the 1942 amendment to section 117 (a) (1) of the Internal Revenue Code, which excluded from the definition of capital assets “real property used in the trade or business of the taxpayer.”
Respondent, on the other hand, contends that the real estate involved here was a capital asset, since it was never actually used in petitioner’s trade or…
2Cases cited2 opinions
- P. Dougherty Co. v. CommissionerUnited States Tax Court · 1945
- Wright v. CommissionerUnited States Tax Court · 1947
3Cited by60 opinions
- Riss v. CommissionerUnited States Tax Court · 1971
- Alamo Broadcasting Co. v. CommissionerUnited States Tax Court · 1950
- Hoopengarner v. CommissionerUnited States Tax Court · 1983
- Fox v. CommissionerUnited States Tax Court · 1951
- Boston Elevated Railway Co. v. CommissionerUnited States Tax Court · 1951
55 more not listed; retrieve them via the Exa API.