Wilson v. Commissioner
United States Tax Court
Held, that under the contract pursuant to which the Valley Lumber Company, a partnership, acquired a tract of timber known as the Vaughan timber, such partnership would, under Oregon law, be deemed the equitable owner thereof; that its subsequent cutting arrangement with its controlled corporation constituted a "disposal" of the timber within the scope and intendment of section 117(k) (2), I. R. C. 1939; and that petitioners' distributable shares of the partnership's profits…
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Held, that under the contract pursuant to which the Valley Lumber Company, a partnership, acquired a tract of timber known as the Vaughan timber, such partnership would, under Oregon law, be deemed the equitable owner thereof; that its subsequent cutting arrangement with its controlled corporation constituted a "disposal" of the timber within the scope and intendment of section 117(k) (2), I. R. C. 1939; and that petitioners' distributable shares of the partnership's profits therefrom are properly taxable as long-term capital gains.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The issue here involves the proper tax treatment to be accorded petitioners’ shares of the partnership profits realized from the cutting of timber by its controlled corporation. That is to say, the question is whether such shares are properly taxable as long-term capital gains, as returned by the petitioners, as short-term capital gains, as determined by respondent, or as ordinary income as now maintained by respondent. Petitioners’ position is twofold. In summary, their contention is that the partnership’s transaction with the corporation, from which transaction the…
2Cases cited13 opinions
- S. R. A., Inc. v. MinnesotaSupreme Court of the United States · 1946
- City of New Brunswick v. United StatesSupreme Court of the United States · 1928
- Anderson v. Miami Lumber Co.Oregon Supreme Court · 1911
- Flanagan Estate v. Great Cent. Land Co.Oregon Supreme Court · 1904
- Rayburn Et Ux. v. Crawford Et Ux.Oregon Supreme Court · 1949
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- Ellison v. FrankCourt of Appeals for the Ninth Circuit · 1957
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