Cottle v. Commissioner
United States Tax Court
Before June 9, 1976, the only real property that petitioner-husband (C) owned was his personal residence. On this date, the owner of an apartment complex with 21 four-plex units sold 3 of these units to C and the other 18 units to people who had been brought together for this purpose by C and C's partner, with a view to common management of the entire complex. About 6 months later, the other owners began selling their units at substantial profits.
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Before June 9, 1976, the only real property that petitioner-husband (C) owned was his personal residence. On this date, the owner of an apartment complex with 21 four-plex units sold 3 of these units to C and the other 18 units to people who had been brought together for this purpose by C and C's partner, with a view to common management of the entire complex. About 6 months later, the other owners began selling their units at substantial profits. C sold his units on June 24, 1977. C incurred a loss on operations during the period he held the 3 four-plexes, but a gain on the sale of the…
1Opinion of the Court
CHABOT, Judge:
Respondent determined a deficiency in Federal individual income tax against petitioners for 1977 in the amount of $177,238. After concessions by petitioners, the issues for decision are as follows:(1) Whether petitioners properly reported the gain realized from the sale of 3 four-plex apartment buildings as long-term capital gain; and(2) Whether a 25-percent distributive share of the income of a partnership is taxable to petitioner-husband or to DRC Enterprises, Inc., petitioner-husband’s wholly owned corporation, to which petitioner-husband had transferred his 25-percent…
2Cases cited35 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
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- Malat v. RiddellSupreme Court of the United States · 1966
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