Gordy v. Commissioner
United States Tax Court
Petitioner held an option to purchase a tract of land. In 1952 he sold the option to a corporation engaged in the development and sale of residential property, in which he was the majority shareholder. In 1955 he purchased a half interest in another tract of land and 1 month later entered into an agreement to sell it to a similar corporation in which he was the majority shareholder.
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Petitioner held an option to purchase a tract of land. In 1952 he sold the option to a corporation engaged in the development and sale of residential property, in which he was the majority shareholder. In 1955 he purchased a half interest in another tract of land and 1 month later entered into an agreement to sell it to a similar corporation in which he was the majority shareholder. Held, on the facts of the case petitioner was not in the real estate business and his gain from the sale of the option and his half interest in the tract of land is taxable as capital gain.
1Opinion of the Court
Mulroney, Judge:
The respondent determined deficiencies in petitioners’ income tax for the years 1953 through 1956, as follows: 1953, $1,651.22; 1954, $2,652.88; 1955, $1,829.08; and 1956, $6,228.45. The questions for decision are whether amounts received from the sale of an option to purchase land and whether an amount received from the sale of an interest in an undeveloped tract of land are taxable as ordinary income or as capital gain.
FINDINGS OF FACT.
Some of the facts have been stipulated and they are found accordingly.
Petitioners, Ralph E. Gordy and Katherine F. Gordy, are husband and…
2Cases cited4 opinions
- Burnet v. ClarkSupreme Court of the United States · 1932
- Estate of Mundy v. CommissionerUnited States Tax Court · 1961
- Glasgow Village Development Corp. v. CommissionerUnited States Tax Court · 1961
- Jarvis v. CommissionerUnited States Tax Court · 1959
3Cited by27 opinions
- Pointer v. CommissionerUnited States Tax Court · 1967
- Mitchell v. CommissionerUnited States Tax Court · 1966
- Todd Tibbals and Helen A. Tibbals v. The United StatesUnited States Court of Claims · 1966
- Royce W. Brown and Patty L. Brown v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- John Nadalin and Mary Nadalin v. The United StatesUnited States Court of Claims · 1966
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