Burman v. Commissioner
United States Board of Tax Appeals
1. Fair market value of notes in connection with the sale of real estate as determined by the respondent approved. 2. Petitioner held not entitled to the benefit of the capital gain provisions of section 208 of the Revenue Act of 1926. 3. A commission paid in connection with the purchase of real estate constitutes a part of the cost of the property and is not deductible as an expense.
1Opinion of the Court
*641omsnoN.
Trammell :
The petitioner contends that the notes of the corporation having a face value of $65,000 had no fair market value at the time of their receipt and that the respondent erred in determining that they had a fair market value equal to their face value. The respondent contends that the notes had a fair market value of $65,000 as-determined by him.
The evidence shows that while Florida land was selling freely in 1925, it was selling only at highly speculative values. Under such circumstances the corporation acquired several parcels of land which according to the evidence had values…
2Cited by12 opinions
- Firemen's Ins. Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Dart v. CommissionerUnited States Board of Tax Appeals · 1933
- Moore v. CommissionerUnited States Tax Court · 1961
- Briarcliff Inv. Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Meiers v. CommissionerUnited States Tax Court · 1982
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