Greene v. Commissioner

HOLMES, Circuit Judge.

This case involves petitioners’ income tax liability in 1938 and 1939 arising from profits earned upon 37 sales of interests in oil and gas leases. In his returns for each year the taxpayer treated his profits as gains resulting from the disposition of capital assets; the Commissioner, asserting that the properties were not capital assets but were held primarily for sale to customers in the ordinary course of business, treated the profits as ordinary income, and made a deficiency assessment. The Tax Court sustained the Commissioner, and, upon the petition for review…