Erickson v. Commissioner
United States Tax Court
Petitioners bought bulls and rented them for nominal amounts to neighboring dairy farmers for breeding purposes. The farmers using the bulls fed and cared for them at no expense to petitioners. After about a year and a half petitioner sold the bulls for slaughtering. The principal income was derived from the sale of the bulls.
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Petitioners bought bulls and rented them for nominal amounts to neighboring dairy farmers for breeding purposes. The farmers using the bulls fed and cared for them at no expense to petitioners. After about a year and a half petitioner sold the bulls for slaughtering. The principal income was derived from the sale of the bulls. Held, petitioners held the bulls for sale to customers in the ordinary course of their business and the income from the sales is taxable as ordinary income and not as a capital gain under section 117 (j) (1) of the Internal Revenue Code of 1939.
1Opinion of the Court
OPINION.
BRUCE, Judge:
The question for decision is whether the respondent erred in determining that the gain realized by petitioners in the taxable year 1948 from the sale of bulls was taxable as ordinary income. Petitioners contend that those sales are to be treated as sales of capital assets, viz, “property used in the trade or business,” under section 117 (j) (1), Internal Revenue Code of 1939.1 The petitioners claim that they were in the business of renting bulls for breeding purposes. Respondent argues that the bulls were held “primarily for sale to customers in the ordinary course of his…
2Cases cited9 opinions
- MAULDIN v. COMMISSIONER OF INTERNAL REVENUE (Two Cases)Court of Appeals for the Tenth Circuit · 1952
- Rollingwood Corp. v. Commissioner of Internal Revenue. Bohannon v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1951
- United States v. PfisterCourt of Appeals for the Eighth Circuit · 1953
- Brown v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1944
- Delsing v. United StatesCourt of Appeals for the Fifth Circuit · 1951
4 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Jewell v. CommissionerUnited States Tax Court · 1955
- Hancock v. CommissionerUnited States Tax Court · 1959
- Campbell v. CommissionerUnited States Tax Court · 1961
- Erickson v. CommissionerUnited States Tax Court · 1954
- Hancock v. CommissionerUnited States Tax Court · 1959
1 more not listed; retrieve them via the Exa API.