Kanawha Valley Bank v. Commissioner
United States Tax Court
1. Petitioner, a bank, precluded by state law from carrying on a real estate business, as an incident of collection of loans made upon mortgages, acquired by foreclosure and sold over the course of two years three pieces of real estate.
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1. Petitioner, a bank, precluded by state law from carrying on a real estate business, as an incident of collection of loans made upon mortgages, acquired by foreclosure and sold over the course of two years three pieces of real estate. Held, such real estate constituted capital assets within section 117 (a) (1) of the Internal Revenue Code, 1939 edition, and the gain or loss realized on its sale was capital in character. 2. Held, that where petitioner, in following the customary practice of its business regularly carried on, subscribed for allotments of government securities, but with the…
1Opinion of the Court
OPINION.
Leech, Judge:
The issue is whether or not the parcels of real estate and the securities acquired by petitioner, under the circumstances set out in our findings of fact, constituted capital assets within the purview of section 117 (a) (1) of the Internal Revenue Code, 1939 edition.1
There is no doubt that in each instance these assets constituted “property held by the taxpayer.” Respondent does not contend that they constituted “stock in trade” or “property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year.” His…
2Cited by30 opinions
- Mensik v. CommissionerUnited States Tax Court · 1962
- Dunlap, Acting Collector of Internal Revenue v. Oldham Lumber CoCourt of Appeals for the Fifth Circuit · 1950
- Boomhower v. United StatesDistrict Court, N.D. Iowa · 1947
- Hoover Co. v. CommissionerUnited States Tax Court · 1979
- Allstate Sav. & Loan Asso. v. CommissionerUnited States Tax Court · 1977
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