Ayling v. Commissioner
United States Tax Court
1. Held, lots sold by petitioners during the years involved were not held by petitioners primarily for sale to customers in the ordinary course of a trade or business and the gain derived therefrom is taxable as capital gain. 2. Allocation of purchase price and cost of improvements between property sold and property retained by petitioners determined.
1Opinion of the Court
Drennen, Judge:
Respondent determined deficiencies in income tax and addition to tax as follows:
Addition to tax, Tear Deficiency sec. 29Jf(d),I.R.C. 1989
1954_ $855.57 $247.12
1955_ 3,847.07 _
The issues for decision are (1) whether certain lots sold by petitioners during the taxable years 1954 and 1955 constituted property held primarily for sale to customers in the ordinary course of a trade or business so that the profit therefrom was taxable as ordinary incomp rather than capital gain; and (2) whether the basis for the property subdivided and the allocation of such basis among the individual…
2Cases cited11 opinions
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Thrift v. CommissionerUnited States Tax Court · 1950
- Arthur W. Smith and Mrs. Arthur W. Smith v. Charles H. Dunn, Formerly Acting Collector of Internal RevenueCourt of Appeals for the Fifth Circuit · 1955
- Nathan D. Goldberg and S. E. Wood, Jr. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1955
- Boomhower v. United StatesDistrict Court, N.D. Iowa · 1947
6 more not listed; retrieve them via the Exa API.
3Cited by51 opinions
- Bynum v. CommissionerUnited States Tax Court · 1966
- Howell v. CommissionerUnited States Tax Court · 1972
- Coupe v. Comm'rUnited States Tax Court · 1969
- Mitchell v. CommissionerUnited States Tax Court · 1966
- Oace v. CommissionerUnited States Tax Court · 1963
46 more not listed; retrieve them via the Exa API.