Joe Di Lisio and Cristina Di Lisio, Husband and Wife v. Steve P. Vidal, Director of Internal Revenue for the District of New Mexico

BRATTON, Chief Judge.

The question for decision is whether certain gain was subject to tax as income derived from the sale of capital assets or as ordinary income. In their income tax returns for 1949 and 1950, Joe De Lisio and Cristina De Lisio, husband and wife, returned as capital gain income derived from the sale of certain lots in Raton, New Mexico. Representatives of the Bureau of Internal Revenue determined that the gain represented ordinary income. A deficiency in tax for each year followed. The tax with accrued interest was paid. Claims for refund were seasonably filed. No action was…