Buono v. Commissioner
United States Tax Court
Petitioners formed a subch. S corporation in 1968 to acquire a tract of undeveloped land. They intended to sell the entire property intact as soon as the local municipality approved the corporation's application to subdivide the property. A dispute between the municipality and the corporation developed over the subdivision application. A major portion of the property was sold in 1973, after resolution of the controversy.
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Petitioners formed a subch. S corporation in 1968 to acquire a tract of undeveloped land. They intended to sell the entire property intact as soon as the local municipality approved the corporation's application to subdivide the property. A dispute between the municipality and the corporation developed over the subdivision application. A major portion of the property was sold in 1973, after resolution of the controversy. The corporation acquired no other property and was engaged in no other activity. Held, the property sold in 1973 was not held for sale to customers in the ordinary course of…
1Opinion of the Court
Nims, Judge:
Respondent determined deficiencies for 1973 for the following individuals:
George V. Buono.$9,621
John R. and Margaret H. Fiorino.17,550
Thomas F. and Judy K. Kane. 35,420
Francis A. and Barbara A. Miller.8,750
Ben and Sylvia Roberts.7,543
Henry E. and Edith M. Traphagen.10,214
Respondent also asserted an addition to tax for 1973 under section 6653(a) against Thomas F. and Judy K. Kane in the amount of $1,771. Although separate notices of deficiency were sent to the various petitioners, a single petition was filed by all petitioners, as permitted by Rule 34(a)(1), Tax Court Rules of…
2Cases cited25 opinions
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Malat v. RiddellSupreme Court of the United States · 1966
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
- United States v. Ada Belle Winthrop, Individually and as Under the Will of Guy L. Winthrop, DeceasedCourt of Appeals for the Fifth Circuit · 1969
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3Cited by40 opinions
- Green v. Comm'rUnited States Tax Court · 1984
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- S & H, Inc. v. CommissionerUnited States Tax Court · 1982
- Guardian Indus. Corp. v. CommissionerUnited States Tax Court · 1991
- Polakis v. CommissionerUnited States Tax Court · 1988
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