Ellis v. Commissioner
United States Tax Court
Petitioners entered into an agreement to sell fill dirt from their land. Although the agreement designated the areas from which the dirt was to be removed, the buyer of the dirt was not obligated to remove all of the dirt situated therein. Held, petitioner's profit from the sale of fill dirt is taxable as ordinary income.
1Opinion of the Court
Ikwin, Judge:
Respondent determined a deficiency in the amount of $1,466.34 in petitioners’ income tax for the year 1965. Only $1,430.15 of the deficiency is in dispute and is attributable to petitioners’ reporting the profit from the sale of fill dirt on their land as long-term capital gain.
FINDINGS OF FACT
Some of the facts were stipulated. The stipulation, together with the exhibits therein identified and therewith admitted in evidence, is incorporated in these findings by this reference.
Petitioners are Richard L. Ellis and Edna May Ellis who are husband and wife and who at all relevant…
2Cases cited6 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Walter R. Laudenslager and Marguerite Laudenslager v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1962
- James A. Rutledge and Mattie L. Rutledge v. United StatesCourt of Appeals for the Fifth Circuit · 1970
- Collins v. CommissionerUnited States Tax Court · 1971
1 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Estate of Marian H. Walker, Deceased v. Commissioner of Internal Revenue (Three Cases)Court of Appeals for the Third Circuit · 1972
- Ellis v. CommissionerUnited States Tax Court · 1971
- F. & G. Sand & Gravel Co. v. CommissionerUnited States Tax Court · 1976