Reily v. Commissioner
United States Tax Court
In June of 1961 petitioner acquired from the owner of a tract of realty an option to lease it for certain primary and renewal terms upon stated monthly rentals. The option agreement stated it was to expire on midnight Sept. 5, 1961. On this latter date a new option to lease was executed which was to expire Mar. 15, 1962, or 6 months and 10 days after it was executed. On Feb. 23, 1962, or 5 months and 18 days after the Sept. 5, 1961, option was executed petitioner sold it.
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In June of 1961 petitioner acquired from the owner of a tract of realty an option to lease it for certain primary and renewal terms upon stated monthly rentals. The option agreement stated it was to expire on midnight Sept. 5, 1961. On this latter date a new option to lease was executed which was to expire Mar. 15, 1962, or 6 months and 10 days after it was executed. On Feb. 23, 1962, or 5 months and 18 days after the Sept. 5, 1961, option was executed petitioner sold it. Held, petitioner's gain from the sale of the option was short-term capital gain and no part of the unexercised June 5,…
1Opinion of the Court
Mulroney, Judge:
Respondent determined deficiencies in petitioners’ income tax as follows:
Addition to tax, sec. 6658(a), Year Deficiency I.R.C.1954[1]
1962_____ $1, 354. 52 $67. 73
1963_967.57 48. 38
1964_____ 463. 07 23. 15
Tbe issues are (1) wbetber an “Option to Lease” sold on February 23, 1962, bad been beld by petitioner James S. Reily for more than 6 months so as to entitle tbe petitioners to treat the proceeds as a long-term capital gain and (2) whether petitioners are liable for tbe addition to tax under section 6653(a) for the years in issue.
FINDINGS OF FACT
All of tbe facts were…
2Cases cited7 opinions
- Emmette L. Barran and Martha Barran v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1964
- Leroy Jewelry Co. v. CommissionerUnited States Tax Court · 1961
- England v. CommissionerUnited States Tax Court · 1960
- Barran v. CommissionerUnited States Tax Court · 1962
- Pike v. CommissionerUnited States Tax Court · 1965
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3Cited by50 opinions
- Bixby v. CommissionerUnited States Tax Court · 1972
- Estate of Mason v. CommissionerUnited States Tax Court · 1975
- Capodanno v. CommissionerUnited States Tax Court · 1978
- Molbreak v. CommissionerUnited States Tax Court · 1973
- Prescott v. CommissionerUnited States Tax Court · 1976
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