Cole v. Department of Revenue

Carlisle B. Roberts, Judge.

Rosboro Lumber Company, a partnership of the plaintiffs above named, during the fiscal income tax years ending June 30, 1968, 1969 and 1970, elected to treat the cutting of its timber as a sale or exchange for capital gain purposes under the federal Int Rev Code of 1954, § 631(a). During those years, the partnership employed an experienced appraiser to determine the fair market value as of July 1, the first day of each of the fiscal years mentioned, of the timber cut by the partnership during each fiscal year. The values thus determined were used in the partnership…