Estate of Kahn v. Commissioner

J. JOSEPH SMITH, Circuit Judge:

This is an appeal from a decision in favor of the Commissioner of Internal Revenue by the Tax Court, Goffe, Judge. The Ta.x Court held taxpayer’s joint venture, H. Kahn & Associates, was in reality a proprietorship, and that therefore all of its income was taxable to Kahn;1 that the venture’s principal assets were “property held . . . primarily for sale ... in the ordinary course of business” and therefore not entitled to capital gains treatment, 26 U.S.C. § 1231, and that income from a contract performed by one of Kahn’s subsidiaries must be attributed to the…