Watson v. Commissioner
United States Tax Court
1. The petitioner and her brothers were the operating owners of an orange grove property comprising land, trees, a growing crop of oranges on the trees and other property employed in the operation, which they sold for a lump sum.
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1. The petitioner and her brothers were the operating owners of an orange grove property comprising land, trees, a growing crop of oranges on the trees and other property employed in the operation, which they sold for a lump sum. Held, that the growing crop of oranges was not real property used in the petitioner's trade or business within the meaning of that term as used in section 117 (j) of the Internal Revenue Code, and further that the crop constituted property held by petitioner primarily for sale to customers in the ordinary course of her trade or business and the gain realized upon the…
1Opinion of the Court
OPINION.
Turner, Judge:
The question here is what portion, if any, of the gain realized by the petitioner upon the sale of the orange grove property is attributable to the growing crop of oranges then on the trees and, if any portion of the gain is attributable to the oranges, whether under section 117 of the Internal Eevenue Code it is, or is to be considered as, gain from the sale of capital assets.
That the oranges did not constitute capital assets as capital assets are defined in section 117 is at once apparent, and that is so whether (he oranges be regarded as an inseparable part of the…
2Cases cited25 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Weiss v. WeinerSupreme Court of the United States · 1929
- Helvering v. HammelSupreme Court of the United States · 1941
- Nielsen v. JohnsonSupreme Court of the United States · 1929
- Fawn Lake Ranch Co. v. Comm'rUnited States Tax Court · 1949
20 more not listed; retrieve them via the Exa API.
3Cited by33 opinions
- Watson v. CommissionerSupreme Court of the United States · 1953
- Raich v. CommissionerUnited States Tax Court · 1966
- Helen D. Miller v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1962
- Estate of Ferber v. CommissionerUnited States Tax Court · 1954
- Monaghan v. CommissionerUnited States Tax Court · 1963
28 more not listed; retrieve them via the Exa API.