Yunker v. State Tax Commission

Edward H. Howell, Judge.

This is a suit to set aside an income tax deficiency assessed against plaintiffs for the year 1961. The cases were consolidated for trial and decision.

Plaintiffs, C. R. Yunker and Hugo H. Wiecks, as partners, owned the Crooked River Ranch in Wasco County. The ranch was sold in 1961 and the defendant disallowed the capital gain on the sale taken by the plaintiff, Ynnker, on the grounds the ranch was used in the trade or business of the plaintiff. ORS 316.408 (2). ①

During the years 1956, 1957 and 1958 the plaintiffs, on their state partnership returns, deducted certain…