Armendaris Corp. v. Commissioner
United States Tax Court
Held: 1. Under sec. 1251(c)(2), I.R.C. 1954, gain realized on the disposition of "farm recapture property" is treated as ordinary income to the extent of the amount in the taxpayer's excess deductions account (EDA) as computed under sec. 1251(b) at the close of the taxable year; 2. Under sec. 1251(b)(2)(A), a taxpayer's EDA is increased by its farm net loss for the year and under sec. 1251(b)(3)(A) is decreased by the amount of any farm net loss which does not result in a…
Read the full summary
Held: 1. Under sec. 1251(c)(2), I.R.C. 1954, gain realized on the disposition of "farm recapture property" is treated as ordinary income to the extent of the amount in the taxpayer's excess deductions account (EDA) as computed under sec. 1251(b) at the close of the taxable year; 2. Under sec. 1251(b)(2)(A), a taxpayer's EDA is increased by its farm net loss for the year and under sec. 1251(b)(3)(A) is decreased by the amount of any farm net loss which does not result in a reduction of tax; 3. Since petitioner computed its tax as a percentage of its capital gains on the alternative basis…
1Opinion of the Court
Scott, Jvdge:
Respondent determined a deficiency in petitioner’s Federal income tax for its fiscal year ending April 30,1971, in the amount of $150,605.72. Some of the issues raised by the pleadings have been disposed of by agreement of the parties, leaving for decision the following:(1) Whether the provisions of section 1251,1.R.C. 1954,1 apply to dispositions of farm property by petitioner during its fiscal year ending April 30, 1971, so as to cause the gain from such dispositions to be treated as ordinary income rather than capital gain.(2) If it is determined that under section 1251 the…
2Cases cited8 opinions
- Taylor v. CommissionerUnited States Tax Court · 1977
- Robert B. Gotfredson and Charlotte B. Gotfredson v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1954
- Acro Mfg. Co. v. CommissionerUnited States Tax Court · 1962
- The Acro Manufacturing Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1964
- Estate of Kahn v. CommissionerCourt of Appeals for the Second Circuit · 1974
3 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Armendaris Corp. v. CommissionerUnited States Tax Court · 1979
- Warner v. CommissionerUnited States Tax Court · 1993