Longfellow v. Commissioner
United States Tax Court
Capital Gains v. Ordinary Income -- Subdivision of Land -- Sale to Customers in Ordinary Course of Petitioner's Trade or Business. -- The petitioner sold lots over a period of years in a subdivision created from his rough land which was located in a residential zone. The land was graded by the petitioner's grading company, subdivided, and otherwise improved by the petitioner at an expense of many times the cost of the land.
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Capital Gains v. Ordinary Income -- Subdivision of Land -- Sale to Customers in Ordinary Course of Petitioner's Trade or Business. -- The petitioner sold lots over a period of years in a subdivision created from his rough land which was located in a residential zone. The land was graded by the petitioner's grading company, subdivided, and otherwise improved by the petitioner at an expense of many times the cost of the land. The lots were sold to customers in the ordinary course of the petitioner's trade or business and the gain is taxable as ordinary income.
1Opinion of the Court
OPINION.
Murdock, Judge:
George was asked on direct examination “how did this piece of property fit into your business” and he replied, “I needed space to keep my equipment.” He then referred to equipment which he had at the time he was testifying on December 7, 1956, saying that he had about 20 pieces of heavy equipment scattered all over Illinois which he left sitting out all of the time because he wouldn’t be able to get it on his own property. George testified that he had an outlet on the north end of the 21-acre property to a public street through 2 lots which he owned in an adjoining…
2Cases cited5 opinions
- MAULDIN v. COMMISSIONER OF INTERNAL REVENUE (Two Cases)Court of Appeals for the Tenth Circuit · 1952
- Mauldin v. CommissionerUnited States Tax Court · 1951
- Harry P. Gamble, Jr., and Gretchen B. Gamble, Husband and Wife v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1957
- Moore v. CommissionerUnited States Tax Court · 1958
- Shearer v. SmythDistrict Court, N.D. California · 1953
3Cited by11 opinions
- Hoover v. CommissionerUnited States Tax Court · 1959
- Estate of Mundy v. CommissionerUnited States Tax Court · 1961
- Harchester Realty Corp. v. CommissionerUnited States Tax Court · 1961
- Atteberry v. CommissionerUnited States Tax Court · 1961
- C & A Land Co. v. CommissionerUnited States Tax Court · 1971
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