Heebner v. Commissioner
United States Tax Court
Sec. 117(a)(1)(A), I.R.C. 1939. -- Petitioner had been engaged in the building and construction business for many years. Incidentally, he had been engaged in "package building," which meant that he would procure a satisfactory site, construct a building according to specification, procure financing, and turn over a completed project. In 1951 he began to plan the construction and leasing of a warehouse for Nash-Kelvinator.
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Sec. 117(a)(1)(A), I.R.C. 1939. -- Petitioner had been engaged in the building and construction business for many years. Incidentally, he had been engaged in "package building," which meant that he would procure a satisfactory site, construct a building according to specification, procure financing, and turn over a completed project. In 1951 he began to plan the construction and leasing of a warehouse for Nash-Kelvinator. The building was to be purchased by Prudential Insurance Co. It was constructed by taxpayer through a controlled corporation and was purchased by Prudential as planned.…
1Opinion of the Court
Tietjens, Judge:
The Commissioner determined a deficiency in income tax of $114,372.68 for 1953.
The principal question for decision is whether or not the Commissioner properly treated the profit realized on the disposition of certain property as ordinary income rather than capital gain. If this question is resolved against petitioners, subsidiary issues as to an expense deduction and a determined “dividend realization” will become moot.
FINDINGS OF FACT.
Some of the facts have been stipulated, are so found, and the stipulation is incorporated herein.
Petitioners, George K. Heebner, Jr., and Ruth…
2Cases cited3 opinions
- Williamson v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1953
- Williamson v. CommissionerUnited States Tax Court · 1952
- Estate of Hyman Kleinman, Deceased, Morris A. Kleinman and Reuben Kleinman, Co-Executors v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1957
3Cited by11 opinions
- Williams v. CommissionerUnited States Tax Court · 1966
- Baumgart v. CommissionerUnited States Tax Court · 1983
- Barney v. CommissionerUnited States Tax Court · 1967
- Klayman v. CommissionerUnited States Tax Court · 1973
- Andrew Tell Inv. Co. v. CommissionerUnited States Tax Court · 1970
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